Agenda packet — Laguna Hills City Council, December 12, 2023 (part 1 of 2)

CITY OF LAGUNA HILLS

CITY COUNCIL/PLANNING AGENCY

REGULAR MEETING AGENDA
Tuesday, December 12, 2023 – 7:00 PM
(Closed Session at 6:00 PM when scheduled)
Janine Heft, Mayor
Dave Wheeler, Mayor Pro Tempore Don Caskey, Council Member Erica Pezold, Council Member Joshua Sweeney, Council Member Location: City Council Chamber, 24035 El Toro Road, Laguna Hills, CA 92653 In Person Public Comments: Any person wishing to address the City Council/Planning Agency on any matter, whether or not it appears on this Agenda, is asked to complete a pink “Request to Speak” form available on the table at the back of the Chamber and submit the form to the City Clerk. The Request to Speak form assists the Mayor in ensuring that all persons wishing to address the City Council are recognized and ensures accurate identification of meeting participants in the City Council/Planning Agency Minutes. Completion of the form is voluntary.

It is City policy to limit public testimony to up to three minutes per person, an overall time limit of ten minutes for any one subject, and a total time limit of thirty minutes for Public Comments.

If you are commenting on an Agenda item, your comments will be heard at the time that item is scheduled on the Agenda. If you are addressing the City Council on an item not listed on the Agenda, the City Council is prohibited by law from discussing or taking any action on that item Submission of Electronic Public Comments: Those wishing to make electronic public comments may submit their comments by email to the City Clerk at [email protected], by 5:00 p.m. on Tuesday, December 12, 2023. In the subject line of the email, please state your name and the item number you are commenting on. Any public comment received that does not specify a particular agenda item number will be announced during the general public comment portion of the agenda. All comments received by 5:00 p.m. on the date of the meeting will be provided to the City Council and will be provided for public inspection at the meeting. During the applicable agenda item, the City Clerk will announce the name of the sender and subject matter of all electronic comments received by 5:00 p.m. on Tuesday, December 12, 2023. Email comments will NOT be read by the City Clerk during the meeting.

Electronic public comments may only be submitted via email and comments via text and social media (Facebook, X (formerly Twitter), etc.) will not be accepted.

Please note: The City Council is making every effort to follow the spirit and intent of the Brown Act and other applicable laws regulating the conduct of public meetings in order to maximize transparency and public access. For questions or assistance, please contact the City Clerk’s Office at (949) 707-2635 or via email at [email protected].

City of Laguna Hills City Council/Planning Agency Tuesday, December 12, 2023 Regular Meeting Agenda
2 GENERAL BUSINESS - CONVENING AT 7:00 PM

CALL TO ORDER
Resolution No. 96-04-09-1 established rules of decorum for public meetings held by the City of Laguna Hills. Resolution No. 96-04-09-1 is available on the table at the back of the City Council Chamber.

INVOCATION: Chaplain Jim Davis OCSD
PLEDGE OF ALLEGIANCE: Council Member Wheeler

ROLL CALL OF CITY COUNCIL MEMBERS

CITY COUNCIL REORGANIZATION

REMARKS OF OUTGOING MAYOR

ELECTION OF MAYOR
Recommendation: That the City Council nominate and elect a Mayor.

RECOGNITION OF OUTGOING MAYOR AND RESOLUTION OF COMMENDATION,

JANINE HEFT, MAYOR
Recognition of Outgoing Mayor and Resolution of Commendation, Janine Heft, Mayor
Recommendation: That the City Council adopt a resolution entitled: "A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA HILLS, CALIFORNIA, COMMENDING JANINE HEFT AS MAYOR" and that the City Council present the Resolution and a plaque to Janine Heft recognizing her service to the City.

REMARKS REGARDING MAYOR HEFT'S SERVICE TO THE CITY

REMARKS OF NEWLY ELECTED MAYOR

ELECTION OF MAYOR PRO TEMPORE
Recommendation: That they City Council nominate and elect a Mayor Pro Tempore.

RECESS AND RECONVENE
City of Laguna Hills City Council/Planning Agency Tuesday, December 12, 2023 Regular Meeting Agenda
3 1. PRESENTATIONS AND PROCLAMATIONS

1.1 Laguna Hills High School Student Liaison Report
Recommendation: That the City Council receive a report from Laguna Hills High School 2023 Fall Student Liaison Forrest Frey.

2. SCHEDULE OF FUTURE EVENTS

2.1 Schedule of Future Events
Recommendation: That the City Clerk announce the upcoming meetings and events.

3. PUBLIC COMMENTS
This is the time to address the City Council on any matter not listed on this Agenda that is within the subject matter jurisdiction of the City Council. Public Comments are limited to three minutes per person, an overall time limit of ten minutes for any one subject, and a total time limit of thirty minutes.

4. CONSENT CALENDAR
All matters listed under “CONSENT CALENDAR” are considered to be routine and will be enacted by one motion approving the recommendation listed on the Agenda. There will be no separate discussion unless Members of the City Council or Staff request specific items be removed from the Consent Calendar.

4.1 Waive Reading in Full of all Ordinances and Resolutions on the Agenda Recommendation: That the City Council waive reading in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

4.2 Approval of Minutes for November 14, 2023, Special Meeting Recommendation: That the City Council approve the City Council Minutes for the November 14, 2023, Special Meeting.

4.3 Approval of Minutes for November 14, 2023, Regular Meeting Recommendation: That the City Council approve the City Council/Planning Agency Minutes for the November 14, 2023, Regular Meeting.

City of Laguna Hills City Council/Planning Agency Tuesday, December 12, 2023 Regular Meeting Agenda
4 4.4 Ratification of December 12, 2023, Warrant Register Recommendation: That the City Council ratify the accompanying Warrant Register for the period from November 3, 2023, to November 30, 2023, in the amount of $1,689,978.82.

4.5 Treasurer's Investment Report for October 2023
Recommendation: That the City Council receive and file the Treasurer's Investment Report for the month of October 2023.

4.6 Financial Statements for Fiscal Year Ending June 30, 2023 Recommendation: That the City Council receive and file the Annual Comprehensive Financial Report and other audit reports for fiscal year 2022/2023.

4.7 Affirmation of Appointments List for City Boards, Commissions, and Committees
Recommendation: That the City Council affirm the Local Appointments List and direct that it be posted on the City's web site, at City Hall and in the Laguna Hills Branch Technology Library in accordance with Government Code Section 54972, the Maddy Act.

4.8 2024 City Council Meeting Calendar
Recommendation: That the City Council adopt the proposed 2024 City Council Meeting Calendar.

4.9 Proposed Second Amendment to Civic Center Office Lease with Agatha Global Tech, LLC, a California Limited Liability Company, for 24031 El Toro Road, Suite 304, Laguna Hills, California
Recommendation: That the City Council: 1) Approve the second amendment to the lease agreement with Agatha Global Tech, LLC, a California limited liability company, for 24031 El Toro Road, Suite 304, Laguna Hills, California; 2) Approve the "Assignment and Assumption of Lease and Consent of Lessor;" 3) Authorize the City Manager to make minor modifications, as necessary, to the second amendment to the lease agreement and the "Assignment and Assumption of Lease and Consent of Lessor;" and 4) Authorize the City Manager to execute the second amendment to the lease agreement and the "Assignment and Assumption of Lease and Consent of Lessor."
City of Laguna Hills City Council/Planning Agency Tuesday, December 12, 2023 Regular Meeting Agenda
5 4.10 Mandeville Neighborhood Permit Parking Program
Recommendation: That the City Council: 1) Find and determine that the proposed permit parking controls are not subject to the California Environmental Quality Act pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, Cal. Code of Regs, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; and 2) Adopt a resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAGUNA HILLS, CALIFORNIA, ESTABLISHING A RESIDENTIAL PERMIT PARKING

AREA AND A NO PARKING ZONE DURING DAYS AND HOURS OF STREET

SWEEPING ON CERTAIN STREETS IN THE MANDEVILLE RESIDENTIAL NEIGHBORHOOD."

4.11 Contract Change Order No. 5 for Community Center & Sports Complex Improvements, CIP No. 237
Recommendation: That the City Council: 1) Approve Contract Change Order No. 5 to Oppenheimer National for the Community Center & Sports Complex Improvements, CIP No. 237; and 2) Authorize the City Manager to execute additional Contract Change Orders, if required, up to a total of $10,872.50.

4.12 Approval of a Consulting Services Agreement with Abtech Technologies, Inc. for Information Technology Support Services.

Recommendation: That the City Council: 1) Waive competitive formal bidding requirements and procedures set forth in the City of Laguna Hills Municipal Code (LHMC) Section 3-08.090 with regard to approval of the proposed Consulting Services Agreement with Abtech Technologies, Inc., as it is hereby found and determined, pursuant to LHMC Section 3-08.110(K), that the recommended contract is for Information Technology services; 2) Approve the proposed Consulting Services Agreement with Abtech Technologies, Inc. for Information Technology support services for a three-year term in the total not to exceed contract amount of $415,125.00; and, 3) Authorize the City Manager to execute the proposed Consulting Services Agreement with Abtech Technologies, Inc.

ITEMS REMOVED FROM THE CONSENT CALENDAR

5. PLANNING AGENCY
City of Laguna Hills City Council/Planning Agency Tuesday, December 12, 2023 Regular Meeting Agenda
6 6. CITY COUNCIL PUBLIC HEARINGS

7. ADMINISTRATIVE REPORTS

7.1. City Manager

7.2. City Attorney

7.2.1 Resolution Ratifying and Implementing Certain Changes to the Compensation of the City Manager
Recommendation: That the City Council:
1) Receive an oral report; and
2) Pursuant to the minute action taken by the City Council during open session at the November 14, 2023 City Council Regular Meeting, adopt a ratifying resolution entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LAGUNA HILLS, CALIFORNIA, RATIFYING AND IMPLEMENTING

CERTAIN CHANGES TO THE COMPENSATION OF THE CITY MANAGER, AN UNREPRESENTED EMPLOYEE.”

7.3. Deputy City Manager/Community Services Director

7.3.1 Authorization to Solicit Proposals for the Collection, Transportation, Processing and Diversion of Recyclable Materials and Other Materials and for the Collection, Transportation, and Disposal of Municipal Solid Waste.

Recommendation: That the City Council approve the Request for Proposals for Residential and Commercial solid waste and recycling services substantially in the form attached, and authorize staff to solicit proposals.

8. MATTERS AGENDIZED AND PRESENTED BY CITY COUNCIL MEMBERS

9. CITY COUNCIL MEMBER COMMITTEE REPORTS

9.1 Committee Assignment Reports
Recommendation: That the City Council receive reports from City Council Members on the City Council Committee Assignments listed in the staff report.

City of Laguna Hills City Council/Planning Agency Tuesday, December 12, 2023 Regular Meeting Agenda
7 10. CITY COUNCIL MEMBER COMMENTS

ADJOURNMENT
The next Regular Meeting of the City Council/Planning Agency will be January 9, 2024, at 7:00 p.m., in the City Council Chamber, located at 24035 El Toro Road, Laguna Hills, California.

CERTIFICATION
I, JENNIFER LEE, City Clerk of the City of Laguna Hills, do hereby certify that a copy of the foregoing Agenda was posted at Laguna Hills City Hall, Laguna Hills Community Center, and the Courtyard at La Paz Center by December 8, 2023, at 5:00 p.m.

December 8, 2023
Jennifer Lee, City Clerk Date
It is the intention of the City of Laguna Hills to comply with the Americans with Disabilities Act in all respects. If as an attendee or a participant at this meeting you will need special assistance beyond what is normally provided, the City of Laguna Hills will attempt to accommodate you in every reasonable manner. Please contact the office of the City Clerk at (949) 707-2635. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office at 24035 El Toro Road, Laguna Hills, California, during normal business hours. In addition, such writings or documents will be made available for public review on the City’s website at: https://www.lagunahillsca.gov/supplementalagenda and at the respective public meeting.

City Council Members receive no additional compensation or stipend as a result of simultaneously convening meetings of the Laguna Hills Planning Agency.

City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: December 12, 2023
TO: Mayor and Council Members
FROM: Jennifer Lee
City Clerk
ISSUE: Recognition of Outgoing Mayor and Resolution of Commendation, Janine Heft, Mayor
RECOMMENDATION: That the City Council adopt a resolution entitled: "A

SUMMARY:

Mayor Janine Heft served her term as Mayor of the City of Laguna Hills from December 13, 2022, through December 12, 2023. It is now in order to recognize Mayor Heft for her service to the City as Mayor.

ATTACHMENTS:
• Proposed Resolution of Commendation
Packet Pg. 8
RESOLUTION NO. 2023-12-12-X

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAGUNA HILLS, CALIFORNIA, COMMENDING

JANINE HEFT AS MAYOR
WHEREAS, Janine Heft, was elected to the City Council on November 8, 2016; took her Oath of Office on December 13, 2016; and served her second term as Mayor of the City of Laguna Hills from December 13, 2022, through December 12, 2023; and
WHEREAS, in addition to accepting the responsibilities of Mayor, serving on the City’s Events, Communication, and Beautification Committee and 3/5 Memorial Ad Hoc Committee, and faithfully fulfilling her duties and responsibilities, Janine Heft has ably represented the City on various regional boards including serving as Vice Chair of the San Joaquin Hills Transportation Corridor Agency, 2023-2024 President of the Association of California Cities – Orange County’s, and delegate to the League of California Cities General Assembly; and
WHEREAS, during the year that Janine Heft has presided as Mayor, the City Council adopted the City’s Biennial Budget for the 2023/2024 & 2024/2025 fiscal years, allocating funding for two additional Orange County Sheriff’s Department deputies and one additional Community Services Officer; launched “The Round-Up” electronic newsletter; adopted five Ordinances enacting regulations regarding parking, short term rentals, the sign code and informal bidding procedures; approved multiple master sign programs, welcoming new businesses to the City; and approved the redevelopment of Laguna Hills Plaza on Alicia Parkway; and WHEREAS, the performance of her duties and responsibilities as Mayor have been characterized by excellent and constructive contributions to the lasting development of our City, and with detailed attention to financials and enhanced transparency, earning the respect and admiration of her colleagues.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA
HILLS, CALIFORNIA, on behalf of all our citizens, does hereby express its appreciation and thanks to Mayor Heft, for her service to the community as Laguna Hills Mayor for 2023.

PASSED, APPROVED, AND ADOPTED this 12
th day of December 2023.
____________________________________
, MAYOR
ATTEST:
___________________________________

JENNIFER LEE, CITY CLERK
a
Packet Pg. 9
Attachment: Proposed Resolution of Commendation (3369 : Resolution of Commendation, Janine Heft, Mayor) Resolution No. 2023-12-12-X

Page 2 ends

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF LAGUNA HILLS )
I, Jennifer Lee, City Clerk of the City of Laguna Hills, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 2023-12-12-X adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 12
th day of December 2023, by the following
vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

JENNIFER LEE, CITY CLERK
a
Packet Pg. 10
Attachment: Proposed Resolution of Commendation (3369 : Resolution of Commendation, Janine Heft, Mayor) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: December 12, 2023
TO: Mayor and Council Members
FROM: Jennifer Lee
City Clerk
ISSUE: Schedule of Future Events
RECOMMENDATION: That the City Clerk announce the upcoming meetings and events.

SUMMARY:

Parent’s Night Out
Friday, December 15, 6:00-8:30pm, Laguna Hills Community Center and Sports Complex Holiday Event Series-Holiday Dance Extravaganza
Saturday, December 16, 7:00-9:00pm, Laguna Hills Community Center and Sports Complex Events, Communication, and Beautification Committee Regular Meeting Monday, December 18, 11:00am, Civic Center Admin Conference Room City Closure for the Christmas Holiday
Both City Hall and the Community Center will be closed Monday, December 25th and Monday, January 1st. In addition to the two Holiday closures, both facilities will observe Holiday closure and be closed from Tuesday, December 26th through Sunday, December 31st.

City Council/Planning Agency Regular Meetings
Tuesday, January 9, 7:00pm, Laguna Hills Civic Center Council Chamber Tuesday, January 23, 7:00pm, Laguna Hills Civic Center Council Chamber Traffic Commission Regular Meeting
Wednesday, January 17, 7:00pm, Laguna Hills Civic Center Council Chamber

2.1 Packet Pg. 11
City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: December 12, 2023
TO: Mayor and Council Members
FROM: Jennifer Lee
City Clerk
ISSUE: Approval of Minutes for November 14, 2023, Special Meeting RECOMMENDATION: That the City Council approve the City Council Minutes for the November 14, 2023, Special Meeting.

ATTACHMENTS:
• City Council Minutes for the November 14, 2023, Special Meeting

4.2 Packet Pg. 12

CITY OF LAGUNA HILLS

CITY COUNCIL

SPECIAL MEETING

MINUTES
Tuesday, November 14, 2023

CALL TO ORDER
The meeting was called to order at 5:03 p.m. by Mayor Heft.

ROLL CALL OF CITY COUNCIL MEMBERS
Attendee Name Title Status Arrived
Janine Heft Mayor Present
Dave Wheeler Mayor Pro Tempore Present
Don Caskey Council Member Present 5:05 pm
Erica Pezold Council Member Present
Joshua Sweeney Council Member Present

ANNOUNCEMENT OF CLOSED SESSION ITEM(S)
A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957(b)(1)
Public Employee Title: City Manager - Annual Performance Review B. CONFERENCE WITH LABOR NEGOTIATOR
Pursuant to Government Code Section 54957.6
Agency Negotiator: Janine Heft, Mayor
Unrepresented Employee: Jarad Hildenbrand, City Manager

PUBLIC COMMENT ON CLOSED SESSION ITEM(S)
There were no public comments on the closed session items.

ADJOURN TO CITY COUNCIL CONFERENCE ROOM OR COUNCIL CHAMBER

CONVENE INTO CLOSED SESSION
The City Council convened into closed session to consider the matter(s) listed above.

RECONVENE TO CITY COUNCIL CHAMBER
The City Council reconvened the City Council Meeting at 6:59 p.m. All Council Members were present in Chamber.

4.2.a
Packet Pg. 13
Attachment: City Council Minutes for the November 14, 2023, Special Meeting (3371 : Approval of Minutes for November 14, 2023, Special City of Laguna Hills City Council Tuesday, November 14, 2023 Special Meeting Minutes
2 CLOSED SESSION REPORT
A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957(b)(1)
Public Employee Title: City Manager - Annual Performance Review B. CONFERENCE WITH LABOR NEGOTIATOR
Pursuant to Government Code Section 54957.6
Agency Negotiator: Janine Heft, Mayor
Unrepresented Employee: Jarad Hildenbrand, City Manager City Attorney Simonian stated that the City Council convened into closed session pursuant to the authorities listed on the Agenda with no reportable action taken.

ADJOURNMENT
There being no further business before the City Council at this session, Mayor Heft declared the meeting adjourned at 7:00 p.m.

Jennifer Lee, City Clerk
ATTEST:
, Mayor
Approved at meeting of December 12, 2023

4.2.a
Packet Pg. 14
Attachment: City Council Minutes for the November 14, 2023, Special Meeting (3371 : Approval of Minutes for November 14, 2023, Special City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: December 12, 2023
TO: Mayor and Council Members
FROM: Jennifer Lee
City Clerk
ISSUE: Approval of Minutes for November 14, 2023, Regular Meeting RECOMMENDATION: That the City Council approve the City Council/Planning Agency Minutes for the November 14, 2023, Regular Meeting.

ATTACHMENTS:
• City Council/Planning Agency Minutes for the November 14, 2023, Regular Meeting

4.3 Packet Pg. 15

CITY OF LAGUNA HILLS

CITY COUNCIL/PLANNING AGENCY

REGULAR MEETING

MINUTES
Tuesday, November 14, 2023
GENERAL BUSINESS - CONVENING AT 7:00 PM

CALL TO ORDER
The meeting was called to order at 7:00 p.m. by Mayor Heft.

INVOCATION: Chaplain Jim Davis of the Orange County Sheriff's Department PLEDGE OF ALLEGIANCE: Council Member Sweeney

ROLL CALL OF CITY COUNCIL MEMBERS
Attendee Name Title Status Arrived
Janine Heft Mayor Present
Dave Wheeler Mayor Pro Tempore Present
Don Caskey Council Member Present
Erica Pezold Council Member Present
Joshua Sweeney Council Member Present

1. PRESENTATIONS AND PROCLAMATIONS

1.1 Valencia Elementary School Student Liaison Report
The City Council presented Certificates of Appointment and received a report from Valencia Elementary School Student Liaisons Arjun Nanda and Christopher Karsaz.

1.2 Laguna Hills High School Student Liaison Report
The City Council received an oral report from Laguna Hills High School 2023 Fall Student Liaison Evan Figueroa.

2. SCHEDULE OF FUTURE EVENTS

2.1 Schedule of Future Events
City Clerk Lee announce the upcoming meetings and events.

4.3.a
Packet Pg. 16
Attachment: City Council/Planning Agency Minutes for the November 14, 2023, Regular Meeting (3370 : Approval of Minutes for November 14, City of Laguna Hills City Council/Planning Agency Tuesday, November 14, 2023 Regular Meeting Minutes
2 3. PUBLIC COMMENTS
There were no public comments on non-agendized items.

4. CONSENT CALENDAR
Motion to approve the Consent Calendar.

RESULT: APPROVED [UNANIMOUS]
MOVER: Erica Pezold, Council Member
SECONDER: Don Caskey, Council Member
AYES: Janine Heft, Mayor; Dave Wheeler, Mayor Pro Tempore; Don Caskey, Council Member; Erica Pezold, Council Member; Joshua Sweeney, Council Member

4.2 Approval of Minutes for October 24, 2023, Regular Meeting Recommendation: That the City Council approve the City Council/Planning Agency Minutes for the October 24, 2023, Regular Meeting.

4.3 Ratification of November 14, 2023, Warrant Register Recommendation: That the City Council ratify the accompanying Warrant Register for the period from October 13, 2023, to November 2, 2023, in the amount of $466,752.91.

4.4 Annual Review of Investment & Portfolio Policies and Delegation of Investment Authority to the City Treasurer
Recommendation: That the City Council adopt Resolution No. 23023-11-14-1: "A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA HILLS, CALIFORNIA,

DELEGATING INVESTMENT AUTHORITY TO THE CITY TREASURER AND APPROVING

A POLICY FOR THE INVESTMENT OF SURPLUS CITY FUNDS AND RESCINDING RESOLUTION NO. 2022-12-13-7."

4.3.a
Packet Pg. 17
Attachment: City Council/Planning Agency Minutes for the November 14, 2023, Regular Meeting (3370 : Approval of Minutes for November 14, City of Laguna Hills City Council/Planning Agency Tuesday, November 14, 2023 Regular Meeting Minutes
3 4.5 Measure M2 Expenditure Report to the Orange County Transportation Authority for the Fiscal Year Ended June 30, 2023
Recommendation: That the City Council: 1) Approve the M2 Expenditure Report for the fiscal year ended June 30, 2023, for submittal to the Orange County Transportation Authority; and 2) Adopt Resolution No. 2023-11-14-2: "A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA HILLS, CALIFORNIA, CONCERNING THE MEASURE M2 (M2) EXPENDITURE REPORT FOR THE CITY OF LAGUNA HILLS FOR THE FISCAL YEAR ENDED JUNE 30, 2023."

4.6 OCTA Regional Traffic Signal Synchronization Project: Paseo De Valencia - Moulton Parkway Confluence Bypass Corridor
Recommendation: That the City Council adopt Resolution No. 2023-11-14-3: "A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA HILLS, CALIFORNIA,

APPROVING THE SUBMITTAL OF A GRANT APPLICATION TO THE ORANGE

COUNTY TRANSPORTATION AUTHORITY FOR FUNDING UNDER THE
COMPREHENSIVE TRANSPORTATION FUNDING PROGRAMS.”

ITEMS REMOVED FROM THE CONSENT CALENDAR
There were no items removed from the Consent Calendar.

5. PLANNING AGENCY
There were no separate Planning Agency Business Items for this meeting.

6. CITY COUNCIL PUBLIC HEARINGS
There were no City Council Public Hearings.

7. ADMINISTRATIVE REPORTS

7.1. City Manager
The City Manager provide no administrative reports.

7.2. City Attorney

7.2.1 Consideration of Compensation for City Manager
City Attorney Simonian provided information on the item.

Recommendation: That the City Council take such action as it so determines, following the completion of the annual performance evaluation of the City Manager.

4.3.a
Packet Pg. 18
Attachment: City Council/Planning Agency Minutes for the November 14, 2023, Regular Meeting (3370 : Approval of Minutes for November 14, City of Laguna Hills City Council/Planning Agency Tuesday, November 14, 2023 Regular Meeting Minutes
4 In recognition of exceptional job performance during the calendar year under review, a motion that: 1) Effective December 4, 2023, the City Manager’s annual Base Salary shall be increased by 5.5%; 2) Effective December 12, 2023, the City Manager is awarded a 5.5 % performance bonus for calendar year 2023, as authorized per section 4 of the City Manager’s Employment Contract; and 3) The City Attorney is hereby directed to prepare a resolution ratifying these minute actions for City Council approval at the regular meeting of the City Council on December 12, 2023 was moved by Mayor Heft, seconded by Mayor Pro Tempore Wheeler.

RESULT: APPROVED [UNANIMOUS]
MOVER: Janine Heft, Mayor
SECONDER: Dave Wheeler, Mayor Pro Tempore
AYES: Janine Heft, Mayor; Dave Wheeler, Mayor Pro
Tempore; Don Caskey, Council Member;
Erica Pezold, Council Member; Joshua Sweeney,
Council Member

7.3. Public Works Director/City Engineer

7.3.1 Addition of Quimby Funds to CIP 241, General Park Improvements Public Works Director/City Engineer Ames reviewed the information provided in the staff report and responded to Council Member requests for additional information.

Council Member Caskey left the dais at 7:42 p.m.

City Manager Hildenbrand responded to Council Member requests for additional information.

Recommendation: That the City Council: 1) Authorize the Finance Director to amend the fiscal year 2023/2024 budget by appropriating $2,053,640.48 in Quimby Act Park In-Lieu funds toward Capital Improvement Project No. 241 (General Park Renovations); and 2) Approve the park prioritization list for improvements.

RESULT: APPROVED [4 TO 0]
MOVER: Erica Pezold, Council Member
SECONDER: Dave Wheeler, Mayor Pro Tempore
AYES: Janine Heft, Mayor; Dave Wheeler, Mayor Pro
Tempore; Erica Pezold, Council Member; Joshua
Sweeney, Council Member
AWAY: Don Caskey, Council Member

4.3.a
Packet Pg. 19
Attachment: City Council/Planning Agency Minutes for the November 14, 2023, Regular Meeting (3370 : Approval of Minutes for November 14, City of Laguna Hills City Council/Planning Agency Tuesday, November 14, 2023 Regular Meeting Minutes
5 Council Member Caskey returned to the dais at 7:45 p.m.

8. MATTERS AGENDIZED AND PRESENTED BY CITY COUNCIL MEMBERS

8.1 Proposed Monument Memorializing Lewis and Nellie Gail Moulton Mayor Heft provided information on the item.

City Manager Hildenbrand responded to Council Member requests for additional information.

Recommendation: Mayor Heft recommends that the City Council discuss a permanent monument memorializing Lewis and Nellie Gail Moulton.

RESULT: TABLED [UNANIMOUS]
MOVER: Don Caskey, Council Member
SECONDER: Erica Pezold, Council Member
AYES: Janine Heft, Mayor; Dave Wheeler, Mayor Pro Tempore; Don Caskey, Council Member; Erica Pezold, Council
Member; Joshua Sweeney, Council Member

9. CITY COUNCIL MEMBER COMMITTEE REPORTS

9.1 Committee Assignment Reports
The City Council received reports from City Council Members on the City Council Committee Assignments listed in the staff report.

10. CITY COUNCIL MEMBER COMMENTS
Mayor Pro Tempore Wheeler
Mayor Pro Tempore Wheeler expressed concerns of increased flight noise over the City and requested staff to research the current flight plans and regulations.

Council Member Caskey
Council Member Caskey complimented Mayor Heft on recent the State of the City event.

Council Member Caskey provided comments on the dynamic of the City Council and his dream of the Council getting back on course to be less about control, more about collaboration and real teamwork.

4.3.a
Packet Pg. 20
Attachment: City Council/Planning Agency Minutes for the November 14, 2023, Regular Meeting (3370 : Approval of Minutes for November 14, City of Laguna Hills City Council/Planning Agency Tuesday, November 14, 2023 Regular Meeting Minutes
6 Council Member Pezold
Council Member Pezold expressed that it was nice to see the City having a State of the City event again.

Council Member Pezold provided research information on the negative habits of unexperienced leaders and the importance of strong leadership, focus on the constituents, and team collaboration.

Council Member Sweeney
Council Member Sweeney praised the recent State of the City event and the keynote speech made by Mayor Heft.

Mayor Pro Tempore Wheeler
Mayor Pro Tempore Wheeler commended Mayor Heft on the State of the City event and her keynote speech.

Mayor Heft
Mayor Heft gave kudos to the Chamber of Commerce and Communications Lab for their efforts to make the State of the City event a success and expressed her pride in representing the City and being able to talk about all the things the Council has accomplished.

ADJOURNMENT
There being no further business before the City Council at this session, Mayor Heft declared the meeting adjourned at 8:47 p.m.

Jennifer Lee, City Clerk
ATTEST:
, Mayor
Approved at meeting of December 12, 2023

4.3.a
Packet Pg. 21
Attachment: City Council/Planning Agency Minutes for the November 14, 2023, Regular Meeting (3370 : Approval of Minutes for November 14, City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: December 12, 2023
TO: Mayor and Council Members
FROM: Eric Hendrickson
Finance Director
ISSUE: Ratification of December 12, 2023, Warrant Register RECOMMENDATION: That the City Council ratify the accompanying Warrant Register for the period from November 3, 2023, to November 30, 2023, in the amount of $1,689,978.82.

SUMMARY:

The City issues accounts payable disbursements on a regular basis and presents it to City Council for ratification at its next regularly scheduled City Council Meeting. The attached Warrant Register containing checks and electronic funds transfers for the period from November 3, 2023, to November 30, 2023, is being presented for ratification by the City Council. Payments have been reviewed and approved by the appropriate departmental staff. The Finance Director certifies to the accuracy of the attached register and to the availability of monies for payment thereof.

ATTACHMENTS:
• Warrant Register - December 12, 2023
• Payables Detail Report - December 12, 2023

4.4 Packet Pg. 22
Payment Amount
7,274.40
2,940.00
360.00
195.33
33,926.28
71,176.00
5,345.75
1,116.00
437.63
19,421.28
556.08
18,159.25
6,095.65

42.00 16,046.38
4,987.50
550.00
518.00
650.00
10,500.00
2,474.93
180.00
526.48
19,944.19
400.00
8,388.00
88,334.69
38,400.00
4,047.50
2,002.50
200.42
530.22
14,690.00
2,568.14
12,796.10
146.97
12,506.49
5,658.86
340.81
12,627.28
333.24
6,091.38
105.20
701.27
134.12
500.00
3,451.31
9,965.00
1,803.80
392.00

25.21 321.71
481.50
12/4/2023 12:16:56 PM Page 1 of 4
2902 A-0349 A SOURCE OF PRIDE 11/16/2023
2903 A-0365 AT AND T - CALNET 3 11/16/2023
2904 B-0304 BEE MAN, THE 11/16/2023
2899 W-2451 W.G. ZIMMERMAN ENGINEERING, INC. 11/09/2023 2900 W-2450 WEX BANK 11/09/2023
2901 W-2377 WILLDAN ENGINEERING 11/09/2023
2896 U-2165 UNDERGROUND SERVICE ALERT OF SO CALIFORNIA 11/09/2023 2897 Z-CS-0399 VENERACION, SONIA 11/09/2023
2898 V-2224 VERIZON WIRELESS 11/09/2023
2893 T-2713 TOLAR MANUFACTURING CO., INC. 11/09/2023
2894 T-2712 TOTAL SOURCE OFFICEWORKS 11/09/2023
2895 T-2698 TPX COMMUNICATIONS 11/09/2023
2890 O-1575 SOUTHERN CALIFORNIA NEWS GROUP 11/09/2023
2891 S-2295 SOUTHERN COMPUTER WAREHOUSE 11/09/2023
2892 S-2250 SPARKLETTS 11/09/2023
2887 S-1949 SMART AND FINAL 11/09/2023
2888 S-1904 SOUTHERN CALIFORNIA EDISON 11/09/2023
2889 S-1904 SOUTHERN CALIFORNIA EDISON 11/09/2023
2884 R-1978 RESTORATION ARTECHS, INC. 11/09/2023
2885 R-1977 RJ ELECTRIC 11/09/2023
2886 S-1902 SAN DIEGO GAS AND ELECTRIC 11/09/2023
2881 C-1003 ORANGE COUNTY TREASURER-TAX COLLECTOR 11/09/2023 2882 P-1832 PRINTEX PRINTING AND GRAPHICS INC. 11/09/2023 2883 Q-1716 QUADIENT LEASING USA, INC. 11/09/2023
2878 N-1474 NIEVES LANDSCAPE, INC. 11/09/2023
2879 N-1498 NOBEL SYSTEMS, INC. 11/09/2023
2880 N-1487 NUVIS LANDSCAPE ARCHITECTURE 11/09/2023
2875 M-1302 MOULTON NIGUEL WATER DISTRICT 11/09/2023
2876 M-1606 MTM YEE CORP 11/09/2023
2877 N-1499 NEXTREQUEST 11/09/2023
2872 J-1057 JAMEY CLARK, INC. 11/09/2023
2873 L-1382 LOYA, RICKY 11/09/2023
2874 M-1388 MOBILE MINI, INC. 11/09/2023
2869 H-0805 HARRINGTON GEOTECHNICAL ENGINEERING, INC. 11/09/2023 2870 H-0894 HATTOX DESIGN GROUP, LLC 11/09/2023
2871 H-0960 HR GREEN PACIFIC, INC. 11/09/2023
2866 E-0504 EL TORO WATER DISTRICT 11/09/2023
2867 G-0868 GLASER WEIL 11/09/2023
2868 G-0861 GOVERNMENT TAX SEMINARS, LLC 11/09/2023
2863 D-0578 DE NOVO PLANNING GROUP 11/09/2023
2864 D-0541 DIAMOND ENVIRONMENTAL SERVICES 11/09/2023
2865 Z-PS-0042 DRAGIC, STEFAN 11/09/2023
2860 C-0023 COX COMMUNICATION 11/09/2023
2861 C-1122 CROSSTOWN ELECTRICAL AND DATA, INC. 11/09/2023 2862 D-0461 DATA TICKET, INC. 11/09/2023
2857 C-0324 CITY OF MISSION VIEJO 11/09/2023
2858 C-1191 COUNTY OF ORANGE 11/09/2023
2859 C-1190 COUNTY OF ORANGE 11/09/2023
2854 B-0304 BEE MAN, THE 11/09/2023
2855 B-0437 BRINKS, INCORPORATED 11/09/2023
2856 C-1144 CHARLES ABBOTT ASSOCIATES, INC 11/09/2023
Payment Type: Regular
2852 A-0138 ALL CITY MANAGEMENT, INC. 11/09/2023
2853 A-0371 AVENU MUNISERVICES, LLC 11/09/2023
Warrant Register - December 12, 2023
City of Laguna Hills, CA By Check Number
Date Range: 11/03/2023 - 11/30/2023
Check Number Vendor Number Vendor Name Payment Date

4.4.a
Packet Pg. 23
Attachment: Warrant Register - December 12, 2023 (3378 : Warrant Register, December 12, 2023) Payment Amount
500.00
1,248.00
1,165.00
23,403.42
9,750.00
18,731.83
500.00
11,861.64

40.00 333.00
198.04
1,376.00
3,199.79
108,115.70
900.00
57,600.00
-
-
-
39,389.22
100.00

32.00 500.00
1,500.00
964.72
11,945.70

36.61 28.95
250.00
946.08
165.00
500.00
6,834.28
341.83
5,995.90
172.50
2941 S-2250 SPARKLETTS 11/22/2023 234.31
Total Regular: 760,226.37
12/4/2023 12:16:56 PM Page 2 of 4
2938 M-1388 MOBILE MINI, INC. 11/22/2023
2939 N-1493 NEXUSTEK 11/22/2023
2940 S-1944 SOUTHERN CALIF MUN ATHLETIC FEDERATION 11/22/2023 2935 C-0349 CPRS - SOUTH REGION 11/22/2023
2936 Z-CS-0447 JAS, SANDRA CALLE 11/22/2023
2937 M-1600 MERCY HOUSE LIVING CENTERS, INC. 11/22/2023 2932 A-0365 AT AND T - CALNET 3 11/22/2023
2933 Z-CS-0446 BALLADARES, JENNIFER 11/22/2023
2934 C-0023 COX COMMUNICATION 11/22/2023
2929 T-2712 TOTAL SOURCE OFFICEWORKS 11/16/2023
2930 W-2337 WEST COAST ARBORISTS, INC. 11/16/2023
2931 A-0349 A SOURCE OF PRIDE 11/22/2023
2926 S-1980 STATE DEPARTMENT OF JUSTICE ACCOUNTING OFFICE 11/16/2023 2927 Z-CD-0107 SUN COUNTRY POOLS 11/16/2023
2928 Z-CD-0077 SWAN POOLS OF SOUTHERN CALIFORNIA 11/16/2023 2923 **Void** 11/16/2023
2924 S-1902 SAN DIEGO GAS AND ELECTRIC 11/16/2023
2925 Z-CD-0175 SIMCIK, JASON 11/16/2023
2920 Z-CD-0173 ROOFING STANDARDS, INC. 11/16/2023
2921 **Void** 11/16/2023
2922 **Void** 11/16/2023
2917 N-1474 NIEVES LANDSCAPE, INC. 11/16/2023
2918 O-1612 OPPENHEIMER NATIONAL 11/16/2023
2919 Z-CD-0434 RAFAEL, JOSE 11/16/2023
2914 H-0805 HARRINGTON GEOTECHNICAL ENGINEERING, INC. 11/16/2023 2915 I-0942 IRVINE RANCH WATER DISTRICT 11/16/2023
2916 J-1057 JAMEY CLARK, INC. 11/16/2023
2911 Z-CD-0250 DREAMSCAPES BY M G R INC 11/16/2023
2912 E-0554 ECONOMICS, INC. 11/16/2023
2913 Z-PS-0043 GONZALES, EZEKIEL 11/16/2023
2908 C-1144 CHARLES ABBOTT ASSOCIATES, INC 11/16/2023
2909 C-1169 COMMUNICATIONS LAB 11/16/2023
2910 C-1122 CROSSTOWN ELECTRICAL AND DATA, INC. 11/16/2023 2905 Z-CD-0330 BRIAN'S POOL PLASTERING 11/16/2023
2906 B-0440 BUCKNAM INFRASTRUCTURE GROUP, INC. 11/16/2023 2907 C-1133 CALIFORNIA YELLOW CAB 11/16/2023
Warrant Register - December 12, 2023 Date Range: 11/03/2023 - 11/30/2023 Check Number Vendor Number Vendor Name Payment Date

4.4.a
Packet Pg. 24
Attachment: Warrant Register - December 12, 2023 (3378 : Warrant Register, December 12, 2023) Payment Amount
32,656.01
14,093.75
883,002.69
184 93 0.00 1,689,978.82
12/4/2023 12:16:56 PM Page 3 of 4
Bank Drafts 15 3 0.00 929,752.45
EFT's 0 0 0.00 0.00
Manual Checks 0 0 0.00 0.00
Voided Checks 0 3 0.00 0.00
929,752.45
Bank Code AP Bank Summary
Payable
Count
Payment
Payment Type Count Discount Payment
Regular Checks 169 87 0.00 760,226.37
DFT0002621 H-0966 HIGH LEVEL SECURITY SOLUTIONS, INC. 11/07/2023 DFT0002622 C-1007 OCSD LAW ENFORCEMENT CONTRACT, OC TREASURER-TAX 11/09/2023 Total Bank Draft:

Warrant Register - December 12, 2023 Date Range: 11/03/2023 - 11/30/2023 Check Number Vendor Number Vendor Name Payment Date
Payment Type: Bank Draft
DFT0002620 B-0276 BANK OF AMERICA VISA CARD 11/09/2023

4.4.a
Packet Pg. 25
Attachment: Warrant Register - December 12, 2023 (3378 : Warrant Register, December 12, 2023) 998 POOL 11/2023 1,689,978.82
1,689,978.82
12/4/2023 12:16:56 PM Page 4 of 4
184 93 0.00 1,689,978.82
Fund Summary
Fund Name Period Amount
Bank Drafts 15 3 0.00 929,752.45
EFT's 0 0 0.00 0.00
Manual Checks 0 0 0.00 0.00
Voided Checks 0 3 0.00 0.00
All Bank Codes Check Summary
Payable
Count
Payment
Payment Type Count Discount Payment
Regular Checks 169 87 0.00 760,226.37
Warrant Register - December 12, 2023 Date Range: 11/03/2023 - 11/30/2023

4.4.a
Packet Pg. 26
Attachment: Warrant Register - December 12, 2023 (3378 : Warrant Register, December 12, 2023) Amount
11/09/2023 NEXTREQUEST 278875 FOIA Workflow Platform, FY 23/24 100-155-700030 8,388.00 12/4/2023 12:20:55 PM Page 1 of 9
11/09/2023 NUVIS LANDSCAPE ARCHITECTURE 26732 Professional Services, LEG-0011- 2023, Aug '23
100-000-223000 1,155.00
11/09/2023 NUVIS LANDSCAPE ARCHITECTURE 26841 Professional Services, LEG-0010- 2023, Sep '23
100-000-223000 135.00
11/09/2023 NUVIS LANDSCAPE ARCHITECTURE 26844 Landscape Design Standards Update, Sep '23
100-225-700227 2,757.50
11/09/2023 HATTOX DESIGN GROUP, LLC 2310101 Civic Center Improvements, CIP #505 100-600-790600 650.00 11/09/2023 W.G. ZIMMERMAN ENGINEERING, 23-10-353 On-Call Engineer Services, Oct '23 100-355-700250 9,965.00 11/09/2023 PRINTEX PRINTING AND GRAPHICS
INC.
25060 Holiday Events Banners, Oct '23 100-310-624500 200.42 11/09/2023 MTM YEE CORP 1869 Advertising-Program Services, Nov 100-310-624500 400.00 11/09/2023 CITY OF MISSION VIEJO 21148 Animal Care Services, Oct-Dec '23 100-420-720401 71,176.00 11/09/2023 HARRINGTON GEOTECHNICAL
ENGINEERING, INC.
22505 Professional Services, USE-0147-
2023, Jun '23
100-000-223000 518.00
11/09/2023 DATA TICKET, INC. 158003 Process Fee, Parking Citations, Oct 100-420-720823 556.08 11/09/2023 HR GREEN PACIFIC, INC. 168620 Public Works Permit Inspections, Oct '23
100-355-700255 10,500.00
11/09/2023 TPX COMMUNICATIONS 175319598-0 Communications Expense, Nov '23 100-195-630000 701.27 11/09/2023 BEE MAN, THE 126064 Bee Removal, Public Works, Oct '23 100-355-720701 180.00 11/09/2023 TOLAR MANUFACTURING CO., INC. 14887 Other Public Works Maintenance, Oct '23
100-355-720401 6,091.38
11/09/2023 NOBEL SYSTEMS, INC. 15796 Computer Consulting Services, Oct 100-195-700090 38,400.00 11/09/2023 EL TORO WATER DISTRICT 110823 Water Usage, Public Works, Sep '23 100-355-635000 16,046.38 11/09/2023 BRINKS, INCORPORATED 12444980 Courier Fee, Armored Transport, Nov '23
100-155-625000 195.33
11/09/2023 BEE MAN, THE 126063 Bee Removal, Public Works, Oct '23 100-355-720701 180.00 11/09/2023 SAN DIEGO GAS AND ELECTRIC 110223 Street Lights, Traffic Control, Oct '23 100-356-631400 12,796.10 11/09/2023 LOYA, RICKY 110823 Umpire Fees, Community Services, Jun '23
100-310-622502 90.00
11/09/2023 LOYA, RICKY 110823 Umpire Fees, Community Services, Feb '23
100-310-622502 90.00
11/09/2023 SOUTHERN CALIFORNIA EDISON 110123 - Acct #700234509668 Street Lights, Traffic Control, Sep '23 100-355-631000 (307.07) 11/09/2023 SOUTHERN CALIFORNIA EDISON 110123 - Acct #700234509668 Street Lights, Traffic Control, Sep '23 100-356-631400 963.76 11/09/2023 SOUTHERN CALIFORNIA EDISON 110123 - Acct #700234509668 Street Lights, Traffic Control, Oct '23 100-356-631400 12,324.79 11/09/2023 SOUTHERN CALIFORNIA EDISON 110123 - Acct #700162476559 Street Lights, Traffic Control, Oct '23 100-356-631400 1,256.38 11/09/2023 SOUTHERN CALIFORNIA EDISON 110123 - Acct #700162476559 Street Lights, Traffic Control, Sep '23 100-356-631900 4,327.83 11/09/2023 SOUTHERN CALIFORNIA EDISON 110123 - Acct #700234509668 Street Lights, Traffic Control, Oct '23 100-355-631000 (474.99) 11/09/2023 SOUTHERN CALIFORNIA EDISON 110123 - Acct #700162476559 Street Lights, Traffic Control, Oct '23 100-355-631000 12.47 11/09/2023 SOUTHERN CALIFORNIA EDISON 110123 - Acct #700162476559 Street Lights, Traffic Control, Sep '23 100-355-631000 0.29 11/09/2023 SOUTHERN CALIFORNIA EDISON 110123 - Acct #700162476559 Street Lights, Traffic Control, Sep '23 100-356-631400 61.89 11/09/2023 MOULTON NIGUEL WATER DISTRICT 102623 Water Usage, Public Works, Oct '23 100-355-635000 19,858.60 11/09/2023 MOULTON NIGUEL WATER DISTRICT 102623a Water Usage, Public Works, Oct '23 100-355-635000 85.59 11/09/2023 COX COMMUNICATION 102823 WiFi, Community Center, Nov '23 100-195-630000 245.54 11/09/2023 COX COMMUNICATION 101923 Cable, City Hall, Oct '23 100-195-630000 (12.13) 11/09/2023 COX COMMUNICATION 101923 Cable, City Hall, Nov '23 100-195-630000 21.60 11/09/2023 COX COMMUNICATION 102023 WiFi, City Hall, Oct '23 100-195-630000 182.62 11/09/2023 DIAMOND ENVIRONMENTAL 0004919398 Heritage Day, Sep '23 100-310-695531 456.40 11/09/2023 GOVERNMENT TAX SEMINARS, LLC 0023229 Employee Training, Gen Gov, Nov '23 100-155-611000 550.00 11/09/2023 WILLDAN ENGINEERING 00626615 Professional Services, VALH, Oct '23 100-000-229100 392.00 11/09/2023 SOUTHERN CALIFORNIA NEWS 0000575978 Legal Advertising, Oct '23 100-155-624001 340.81 11/09/2023 DIAMOND ENVIRONMENTAL 0004851867 Heritage Day, Sep '23 100-310-695531 1,904.25 11/09/2023 DIAMOND ENVIRONMENTAL 0004860467 Heritage Day, Sep '23 100-310-695531 3,735.00 Payables Detail Report
City of Laguna Hills, CA By Fund
Payment Dates 11/03/2023 - 11/30/2023
Payment Date Vendor Name Payable Number Description (Item) Account Number Fund: 100 - GENERAL FUND
11/07/2023 HIGH LEVEL SECURITY SOLUTIONS,
INC.
5668 Private Security Patrol, 10/9/23 -
11/5/23
100-420-720850 14,093.75

4.4.b
Packet Pg. 27
Attachment: Payables Detail Report - December 12, 2023 (3378 : Warrant Register, December 12, 2023) Amount
12/4/2023 12:20:55 PM Page 2 of 9
11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 AAA CA Membership Web 100-310-610000 56.00 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 CA Park Rec Society 100-310-610000 145.00 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Exxon Circle K 100-310-613100 13.30 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Vizual Symphony 100-195-700090 980.00 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Contest-App.co 100-195-940000 96.00 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Best Buy 100-195-940000 1,267.68 11/09/2023 BANK OF AMERICA VISA CARD COMDEV 10.20.23 - Credit Prime Video 100-225-626000 (10.99) 11/09/2023 BANK OF AMERICA VISA CARD COMDEV 10.20.23 - Credit Audible.com 100-225-626000 (14.95) 11/09/2023 BANK OF AMERICA VISA CARD COMDEV 10.20.23 - Credit Audible.com 100-225-626000 (14.95) 11/09/2023 BANK OF AMERICA VISA CARD COMDEV 10.20.23 APA California 100-225-611000 20.00 11/09/2023 BANK OF AMERICA VISA CARD COMDEV 10.20.23 Intelius 100-225-626000 4.99 11/09/2023 BANK OF AMERICA VISA CARD COMDEV 10.20.23 Intelius 100-225-626000 24.86 11/09/2023 BANK OF AMERICA VISA CARD CITY MANAGER 10.20.23 Tuttle Click Ford Lincoln 100-155-646100 89.99 11/09/2023 BANK OF AMERICA VISA CARD CITY MANAGER 10.20.23 NeoGov / GovernmentJobs 100-195-617000 199.00 11/09/2023 BANK OF AMERICA VISA CARD CITY MANAGER 10.20.23 - Credit Southwest Airlines 100-155-612001 (25.00) 11/09/2023 BANK OF AMERICA VISA CARD CITY MANAGER 10.20.23 Pizza 900 100-155-622000 46.35 11/09/2023 BANK OF AMERICA VISA CARD CITY MANAGER 10.20.23 King's Fish House 100-155-622000 120.67 11/09/2023 BANK OF AMERICA VISA CARD CITY MANAGER 10.20.23 BJ's Restaurant 100-155-622000 27.71 11/09/2023 BANK OF AMERICA VISA CARD CITY CLERK 10.20.23 Villa Roma 100-195-622000 158.01 11/09/2023 BANK OF AMERICA VISA CARD CITY MANAGER 10.20.23 Stanley 100-155-611001 1,019.80 11/09/2023 BANK OF AMERICA VISA CARD CITY MANAGER 10.20.23 League of California Cities 100-155-612001 750.00 11/09/2023 BANK OF AMERICA VISA CARD CITY CLERK 10.20.23 Stanley 100-155-611001 1,019.80 11/09/2023 BANK OF AMERICA VISA CARD CITY CLERK 10.20.23 octax.org 100-155-612000 200.00 11/09/2023 BANK OF AMERICA VISA CARD CITY CLERK 10.20.23 Kimpton Sawyer Hotel 100-155-612001 1,357.16 11/09/2023 WEX BANK 92713000 PUBWKS Vehicle Fuel, Oct '23 100-355-613100 553.64 11/09/2023 WEX BANK 92713000 PUBWKS Vehicle Maintenance, Oct '23 100-355-646100 8.00 11/09/2023 VERIZON WIRELESS 9947759606 Communication Expense, Oct '23 100-195-630000 3,451.31 11/09/2023 WEX BANK 92712374 POLSVCS Vehicle Fuel, Oct '23 100-420-613100 512.86 11/09/2023 WEX BANK 92712437 COMSVCS Vehicle Fuel, Oct '23 100-310-613100 214.59 11/09/2023 WEX BANK 92712647 COMDEV Vehicle Fuel, Oct '23 100-225-613100 514.71 11/09/2023 MOBILE MINI, INC. 9019229564 Storage Rental, Community Center, 10/25 - 11/21/23
100-310-641000 225.71
11/09/2023 MOBILE MINI, INC. 9019285142 Storage Rental, Community Center, 10/31 - 11/27/23
100-310-641000 82.97
11/09/2023 MOBILE MINI, INC. 9019298223 Storage Rental, Community Center, 11/1 - 11/28/23
100-310-641000 217.80
11/09/2023 JAMEY CLARK, INC. 74513 Graffiti Removal, Public Works, Oct 100-355-720500 585.00 11/09/2023 NIEVES LANDSCAPE, INC. 75640 Monthly and Misc Landscape, Oct '23 100-355-720700 88,334.69 11/09/2023 ALL CITY MANAGEMENT, INC. 88779 Crossing Guard Services, 10/15/23 - 10/28/23
100-420-720822 7,274.40
11/09/2023 JAMEY CLARK, INC. 74497 Graffiti Removal, Public Works, Oct 100-355-720500 270.00 11/09/2023 JAMEY CLARK, INC. 74503 Graffiti Removal, Public Works, Oct 100-355-720500 588.25 11/09/2023 JAMEY CLARK, INC. 74508 Park Repairs, Public Works, Nov '23 100-355-720701 488.68 11/09/2023 RJ ELECTRIC 62405 Parks Contract Repair, Nov '23 100-355-720701 643.14 11/09/2023 CHARLES ABBOTT ASSOCIATES, INC 66548 Professional Services, Oct '23 100-225-700000 33,926.28 11/09/2023 JAMEY CLARK, INC. 74491 Graffiti Removal, Public Works, Oct 100-355-720500 543.00 11/09/2023 CROSSTOWN ELECTRICAL AND DATA,
INC.
4785 - 4819 Other Public Works Maintenance,
Banners, Sep '23
100-355-720401 1,740.00
11/09/2023 CROSSTOWN ELECTRICAL AND DATA,
INC.
4785 - 4819 Traffic Signal Maintenance, Sep '23 100-356-720420 14,036.58 11/09/2023 RJ ELECTRIC 62366 Parks Contract Repair, Oct '23 100-355-720701 1,925.00 11/09/2023 DE NOVO PLANNING GROUP 4035 LH Housing, Rezone and ODS Program, Oct '23
100-225-700225 18,159.25
11/09/2023 SPARKLETTS 4228482 110323 Operating Supplies, Nov '23 100-195-622000 333.24 11/09/2023 CROSSTOWN ELECTRICAL AND DATA,
INC.
4296-23-010 Traffic Signal Maintenance, Oct '23 100-356-720420 3,644.70 11/09/2023 TOTAL SOURCE OFFICEWORKS 33758 Office Supplies, Oct '23 100-195-620000 67.93 11/09/2023 TOTAL SOURCE OFFICEWORKS 33772 Office Supplies, Nov '23 100-195-620000 37.27 11/09/2023 SMART AND FINAL 3831400010302 Staff Development & Team Building, Oct '23
100-155-611001 146.97
Payables Detail Report Payment Dates: 11/03/2023 - 11/30/2023 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/09/2023 GLASER WEIL 280636 Professional Services Legal, Oct '23 100-155-700011 4,987.50

4.4.b
Packet Pg. 28
Attachment: Payables Detail Report - December 12, 2023 (3378 : Warrant Register, December 12, 2023) Amount
11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Moon Valley Nursery 100-355-720700 215.49 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 12/4/2023 12:20:55 PM Page 3 of 9
11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 California Landscape Contractors Association
100-355-611000 50.00
11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 BootBarn.com 100-355-622000 129.25 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Hanlon Auto Service Center 100-355-646100 77.44 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 2789 10.20.23 ASCE Purchasing 100-355-610000 316.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 2789 10.20.23 Ansafone Communications 100-355-630000 194.25 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 2789 10.20.23 - Credit Amazon.com 100-355-622000 (15.13) 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Chevron 100-420-695000 24.68 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Stater Bros 100-420-695000 18.50 11/09/2023 DRAGIC, STEFAN PSV-0048 Refund, Citation #LH010006620 100-000-460100 42.00 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 In-N-Out Burger 100-420-695000 110.98 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Smart & Final 100-420-695000 56.78 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Ralphs 100-420-695000 28.97 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Chick-fil-A 100-420-695000 157.80 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Costco 100-420-695000 151.66 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Bagel Shack 100-420-695000 144.65 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Chick-fil-A 100-420-695000 367.86 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Sabrosada 100-420-695000 226.28 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 In-N-Out Burger 100-420-695000 162.43 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 The Toll Roads of OC 100-420-646100 3.29 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Chevron 100-420-695000 27.57 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Raising Canes 100-420-695000 86.19 11/09/2023 AVENU MUNISERVICES, LLC INV06-017522 Professional Services, ACFR 100-155-700050 2,940.00 11/09/2023 ORANGE COUNTY TREASURER-TAX

COLLECTOR
OCT 23 Parking Fee Surcharge, Oct '23 100-420-720823 2,002.50 11/09/2023 BANK OF AMERICA VISA CARD POLSVCS 10.20.23 Amazon Prime 100-420-622000 16.15 11/09/2023 BANK OF AMERICA VISA CARD FINANCE 10.20.23 CSMFO 100-155-612000 515.00 11/09/2023 VENERACION, SONIA FRD-0337 Refund, Facility Deposit, R #1035224.002
100-000-222000 500.00
11/09/2023 SOUTHERN COMPUTER WAREHOUSE INV00791619 Software Support, Oct '23 100-195-720050 12,627.28 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 10.21.23 Amazon Marketplace 100-310-695531 114.20 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 10.21.23 Amazon Marketplace 100-310-695531 61.60 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 10.21.23 Amazon Marketplace 100-310-695531 46.92 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 10.21.23 Amazon Marketplace 100-310-620500 30.68 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 10.21.23 Ralphs 100-310-622005 106.65 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 10.21.23 Amazon Marketplace 100-310-695531 146.33 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 10.21.23 Verizon Wireless 100-195-630000 90.48 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 10.21.23 Firehouse Subs 100-310-611000 151.06 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 3336 10.21.23 Hacienda on the Lake 100-310-611000 239.31 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Epic Sports 100-310-910500 6,130.94 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 - Creditity of Aliso Viejo 100-310-695507 (8.42) 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 - CreditOLH CS Offsite/Remote 100-310-695531 (1.00) 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Party City 100-310-695531 57.11 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Baker Party Rentals 100-310-695531 7,991.76 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Walmart 100-310-695531 118.36 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Diamond Environmental Services invoice #0004860255
100-310-695512 326.05
11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Hobby Lobby 100-310-695531 129.24 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 COLH CS Offsite/Remote 100-310-695531 1.00 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Diamond Environmental Services invoice #0004615617
100-310-695508 1,598.90
11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Luxe Booth LLC 100-310-695510 124.75 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Diamond Environmental Services invoice #0004860271
100-310-695512 326.05
11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Apple.com 100-310-695502 10.99 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 2023BigBearOktoberfest 100-310-695505 97.62 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 OC Parks-Parking 100-310-695505 3.00 Payables Detail Report Payment Dates: 11/03/2023 - 11/30/2023 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 Facebook 100-310-624500 32.00 11/09/2023 BANK OF AMERICA VISA CARD COMSVCS 0066 10.21.23 OC Register Subscription 100-310-626000 39.54

4.4.b
Packet Pg. 29
Attachment: Payables Detail Report - December 12, 2023 (3378 : Warrant Register, December 12, 2023) Amount
11/16/2023 NIEVES LANDSCAPE, INC. 76014 Monthly and Misc Landscape, Oct '23 100-355-720700 123.90 12/4/2023 12:20:55 PM Page 4 of 9
11/16/2023 JAMEY CLARK, INC. 74529 Graffiti Removal, Public Works, Nov 100-355-720500 450.00 11/16/2023 JAMEY CLARK, INC. 74533 Park Repairs, Public Works, Nov '23 100-355-720701 135.00 11/16/2023 NIEVES LANDSCAPE, INC. 76013 Monthly and Misc Landscape, Oct '23 100-355-720700 2,382.52 11/16/2023 STATE DEPARTMENT OF JUSTICE

ACCOUNTING OFFICE
693506 Pre-employment Fingerprinting, Oct
'23
100-195-617000 32.00
11/16/2023 JAMEY CLARK, INC. 74527 Park Repairs, Public Works, Nov '23 100-355-720701 157.50 11/16/2023 JAMEY CLARK, INC. 74528 Graffiti Removal, Public Works, Nov 100-355-720500 633.50 11/16/2023 BUCKNAM INFRASTRUCTURE
GROUP, INC.
361-03.01 City Engineer Services, Oct '23 100-355-700250 1,248.00 11/16/2023 CROSSTOWN ELECTRICAL AND DATA,
INC.
4820 - 4859 Traffic Signal Maintenance, Oct '23 100-356-720420 18,731.83 11/16/2023 CHARLES ABBOTT ASSOCIATES, INC 66544 - A (Bus Shelter) Public Works Other, Oct '23 100-355-720401 600.00 11/16/2023 COMMUNICATIONS LAB 2311-604 2023 State of the City Professional Support
100-155-700000 9,750.00
11/16/2023 TOTAL SOURCE OFFICEWORKS 33876 Computer Supplies, Nov '23 100-195-621000 210.22 11/16/2023 TOTAL SOURCE OFFICEWORKS 33877 Computer Supplies, Nov '23 100-195-621000 754.50 11/16/2023 WEST COAST ARBORISTS, INC. 206986 Tree Trimming Services, Oct '23 100-355-720702 8,523.60 11/16/2023 WEST COAST ARBORISTS, INC. 206987 Tree Trimming Services, Oct '23 100-355-720702 3,422.10 11/16/2023 HARRINGTON GEOTECHNICAL
ENGINEERING, INC.
22877 Professional Services, GRA-10-22- 100-000-220444 333.00 11/16/2023 SAN DIEGO GAS AND ELECTRIC 111323 Street Lights, Traffic Control, Com Ctr, Sep-Oct
100-356-631900 3,364.03
11/16/2023 BEE MAN, THE 126271 Bee Removal, Public Works, Nov '23 100-355-720701 180.00 11/16/2023 BEE MAN, THE 126272 Bee Removal, Public Works, Nov '23 100-355-720701 301.50 11/16/2023 SAN DIEGO GAS AND ELECTRIC 111323 Street Lights, Traffic Control, Com Ctr, Sep-Oct
100-310-631100 12,515.71
11/16/2023 SAN DIEGO GAS AND ELECTRIC 111323 Street Lights, Traffic Control, Com Ctr, Sep-Oct
100-355-631000 8,487.15
11/16/2023 SAN DIEGO GAS AND ELECTRIC 111323 Street Lights, Traffic Control, Com Ctr, Sep-Oct
100-356-631400 15,022.33
11/16/2023 AT AND T - CALNET 3 000020786116 Alarm, Com Ctr & City Hall Lines, Nov '23
100-195-630000 180.42
11/16/2023 AT AND T - CALNET 3 000020786116 Alarm, Com Ctr & City Hall Lines, Nov '23
100-310-630100 141.29
11/16/2023 IRVINE RANCH WATER DISTRICT 110323 Water Usage, Public Works, Nov '23 100-355-635000 198.04 11/09/2023 OCSD LAW ENFORCEMENT

CONTRACT, OC TREASURER-TAX
SH 66832 Law Enforcement Services, Nov '23 100-420-720800 883,002.69 11/09/2023 COUNTY OF ORANGE SH 66859 Fingerprint ID System Charges, Nov 100-420-720835 1,116.00 11/09/2023 COUNTY OF ORANGE STCS002351 Communications Charges, 10/1/23 - 12/31/23
100-420-646000 5,345.75
11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Porter Powder Coating 100-355-910000 3,644.37 11/09/2023 QUADIENT LEASING USA, INC. Q1042937 Lease - Mailing Equip, 8/28/23 - 11/27/23
100-195-641000 530.22
11/09/2023 RESTORATION ARTECHS, INC. RA22397 Parks Contract Repair, Oct '23 100-355-720701 14,690.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 11/09/2023 BANK OF AMERICA VISA CARD PUBWKS 3409 10.20.23 Smartlink 100-355-720700 25.00 Payables Detail Report Payment Dates: 11/03/2023 - 11/30/2023

4.4.b
Packet Pg. 30
Attachment: Payables Detail Report - December 12, 2023 (3378 : Warrant Register, December 12, 2023) Amount
12/4/2023 12:20:55 PM Page 5 of 9
11/16/2023 ROOFING STANDARDS, INC. BLDR-1208-2022 Refund, C&D Deposit, REC-007373- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1209-2022 Refund, C&D Deposit, REC-007371- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1210-2022 Refund, C&D Deposit, REC-007374- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1204-2022 Refund, C&D Deposit, REC-007368- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1206-2022 Refund, C&D Deposit, REC-007370- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1207-2022 Refund, C&D Deposit, REC-007372- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1181-2022 Refund, C&D Deposit, REC-007236- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1182-2022 Refund, C&D Deposit, REC-007235- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1183-2022 Refund, C&D Deposit, REC-007234- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1148-2022 Refund, C&D Deposit, REC-006951- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1149-2022 Refund, C&D Deposit, REC-006952- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1150-2022 Refund, C&D Deposit, REC-006953- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1145-2022 Refund, C&D Deposit, REC-006948- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1146-2022 Refund, C&D Deposit, REC-006949- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1147-2022 Refund, C&D Deposit, REC-006950- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1129-2022 Refund, C&D Deposit, REC-006847- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1130-2022 Refund, C&D Deposit, REC-006848- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1131-2022 Refund, C&D Deposit, REC-006849- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1068-2021 Refund, C&D Deposit, REC-006463- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1069-2021 Refund, C&D Deposit, REC-006464- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1128-2022 Refund, C&D Deposit, REC-006846- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1064-2021 Refund, C&D Deposit, REC-006460- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1065-2021 Refund, C&D Deposit, REC-006461- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1067-2021 Refund, C&D Deposit, REC-006462- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1061-2021 Refund, C&D Deposit, REC-006457- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1062-2021 Refund, C&D Deposit, REC-006458- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1063-2021 Refund, C&D Deposit, REC-006459- 2022
100-000-227001 1,200.00
11/16/2023 SIMCIK, JASON BLDR-0262-2023 Refund, C&D Deposit, REC-011079- 2023
100-000-227001 100.00
11/16/2023 RAFAEL, JOSE BLDR-0353-2023 Refund, C&D Deposit, REC-011385- 2023
100-000-227001 900.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1060-2021 Refund, C&D Deposit, REC-006456- 2022
100-000-227001 1,200.00
11/16/2023 NIEVES LANDSCAPE, INC. 76016 Monthly and Misc Landscape, Oct '23 100-355-720700 109.74 11/16/2023 NIEVES LANDSCAPE, INC. 76017 Monthly and Misc Landscape, Oct '23 100-355-720700 178.03 11/16/2023 A SOURCE OF PRIDE 9110744 Operating Supplies, Nov '23 100-195-622000 25.21 Payables Detail Report Payment Dates: 11/03/2023 - 11/30/2023 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/16/2023 NIEVES LANDSCAPE, INC. 76015 Monthly and Misc Landscape, Oct '23 100-355-720700 405.60

4.4.b
Packet Pg. 31
Attachment: Payables Detail Report - December 12, 2023 (3378 : Warrant Register, December 12, 2023) Amount
11/22/2023 BALLADARES, JENNIFER 62748435 Refund, Facility Deposit, R 100-000-222000 250.00 11/22/2023 JAS, SANDRA CALLE 62777545 Refund, Facility Deposit, R 100-000-222000 500.00 12/4/2023 12:20:55 PM Page 6 of 9
11/22/2023 SPARKLETTS 12194330 110823 Operating Supplies, Comm Ctr, Nov 100-310-622005 234.31 11/22/2023 NEXUSTEK 307028 Prof Svcs, Software Support, NetApp FAS2750A
100-195-720050 5,995.90
11/22/2023 MERCY HOUSE LIVING CENTERS, INC. 5003-23-09 Contract Services - Homelessness, Sep '23
100-310-720302 6,834.28
11/22/2023 COX COMMUNICATION 110723 Traffic Signal, Nov '23 100-195-630000 84.00 11/22/2023 CPRS - SOUTH REGION 110723 Annual Membership, FY 23/24 100-310-610000 165.00 11/22/2023 SOUTHERN CALIF MUN ATHLETIC

FEDERATION
111423/LH Program Class Insurance, Community
Services
100-310-690500 172.50
11/16/2023 SWAN POOLS OF SOUTHERN

CALIFORNIA
POOLR-0137-2022 Refund, Pool Bond, REC-009232- 100-000-228001 500.00 11/22/2023 AT AND T - CALNET 3 000020780544 Traffic Signal, Public Works, Oct '23 100-195-630000 28.95 11/22/2023 COX COMMUNICATION 110523 T-1 Line, Nov '23 100-195-630000 862.08 11/16/2023 SWAN POOLS OF SOUTHERN

CALIFORNIA
POOLR-0117-2022 Refund, Pool Bond, REC-008100- 100-000-228001 500.00 11/16/2023 DREAMSCAPES BY M G R INC POOLR-0128-2022 Refund, Pool Bond, REC-008957- 100-000-228001 500.00 11/16/2023 BRIAN'S POOL PLASTERING POOLR-0130-2022 Refund, Pool Bond, REC-008895- 100-000-228001 500.00 11/16/2023 OPPENHEIMER NATIONAL PAYAPP #01 Comm Ctr & Sports Complex Improvements, CIP 237
100-600-790600 113,806.00
11/16/2023 SUN COUNTRY POOLS POOLR-0005-2023 Refund, Pool Bond, REC-009841- 100-000-228001 500.00 11/16/2023 SWAN POOLS OF SOUTHERN

CALIFORNIA
POOLR-0116-2022 Refund, Pool Bond, REC-007911- 100-000-228001 500.00 11/16/2023 ROOFING STANDARDS, INC. BLDR-1358-2022 Refund, C&D Deposit, REC-008313- 2022
100-000-227001 1,200.00
11/16/2023 GONZALES, EZEKIEL LH010006219 Refund, Citation #LH010006219 100-000-460100 40.00 11/16/2023 OPPENHEIMER NATIONAL PAYAPP #01 Comm Ctr & Sports Complex Improvements, CIP 237
100-000-201001 (5,690.30)
11/16/2023 ROOFING STANDARDS, INC. BLDR-1347-2022 Refund, C&D Deposit, REC-008230- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1348-2022 Refund, C&D Deposit, REC-008244- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1356-2022 Refund, C&D Deposit, REC-008312- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1324-2022 Refund, C&D Deposit, REC-008081- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1338-2022 Refund, C&D Deposit, REC-008172- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1346-2022 Refund, C&D Deposit, REC-008229- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1300-2022 Refund, C&D Deposit, REC-007976- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1301-2022 Refund, C&D Deposit, REC-007977- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1302-2022 Refund, C&D Deposit, REC-007978- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1262-2022 Refund, C&D Deposit, REC-007773- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1263-2022 Refund, C&D Deposit, REC-007774- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1299-2022 Refund, C&D Deposit, REC-007973- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1242-2022 Refund, C&D Deposit, REC-007638- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1247-2022 Refund, C&D Deposit, REC-007647- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1261-2022 Refund, C&D Deposit, REC-007772- 2022
100-000-227001 1,200.00
Payables Detail Report Payment Dates: 11/03/2023 - 11/30/2023 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/16/2023 ROOFING STANDARDS, INC. BLDR-1240-2022 Refund, C&D Deposit, REC-007637- 2022
100-000-227001 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1241-2022 Refund, C&D Deposit, REC-007636- 2022
100-000-227001 1,200.00

4.4.b
Packet Pg. 32
Attachment: Payables Detail Report - December 12, 2023 (3378 : Warrant Register, December 12, 2023) Amount
11/16/2023 OPPENHEIMER NATIONAL PAYAPP #01 Comm Ctr & Sports Complex Improvements, CIP 237
600-252-950237 113,806.00
Fund 600 - CAPITAL IMPROVEMENT PROJECT Total: -
Grand Total: 1,689,978.82
12/4/2023 12:20:55 PM Page 7 of 9
Fund: 600 - CAPITAL IMPROVEMENT PROJECT
11/09/2023 HATTOX DESIGN GROUP, LLC 2310101 Civic Center Improvements, CIP #505 600-000-490100 (650.00) 11/09/2023 HATTOX DESIGN GROUP, LLC 2310101 Civic Center Improvements, CIP #505 600-255-950505 650.00 11/16/2023 OPPENHEIMER NATIONAL PAYAPP #01 Comm Ctr & Sports Complex Improvements, CIP 237
600-000-490100 (113,806.00)
Fund 306 - CR&R RECYCLING FEE Total: 11,861.64
Fund: 307 - C & D FORFEITED DEPOSITS
11/16/2023 ROOFING STANDARDS, INC. BLDR-1059-2021 Refund, C&D Deposit, REC-006455- 2022
307-000-436000 1,200.00
11/16/2023 ROOFING STANDARDS, INC. BLDR-1205-2022 Refund, C&D Deposit, REC-007369- 2022
307-000-436000 1,200.00
Fund 307 - C & D FORFEITED DEPOSITS Total: 2,400.00
Fund 212 - MEASURE M Total: 22,937.54
Fund: 221 - SENIOR MOBILITY PROGRAM
11/16/2023 CALIFORNIA YELLOW CAB 10406023 Senior Mobility Program, Oct '23 221-310-720000 1,165.00 Fund 221 - SENIOR MOBILITY PROGRAM Total: 1,165.00
Fund: 306 - CR&R RECYCLING FEE
11/16/2023 ECONOMICS, INC. 2023-4 Professional Services, Recycling Program, Oct '23
306-355-700000 11,861.64
Fund 100 - GENERAL FUND Total: 1,651,614.64
Fund: 212 - MEASURE M
11/09/2023 UNDERGROUND SERVICE ALERT OF

SO CALIFORNIA
1020230382 Street Maintenance, Oct '23 212-355-720400 97.50 11/09/2023 UNDERGROUND SERVICE ALERT OF

SO CALIFORNIA
23-241430 Street Maintenance, Oct '23 212-355-720400 36.62 11/16/2023 CHARLES ABBOTT ASSOCIATES, INC 66544 Road Maintenance, Oct '23 212-355-720400 22,803.42 Payment Date Vendor Name Payable Number Description (Item) Account Number 11/22/2023 MOBILE MINI, INC. 9019383581 Storage Rental, Community Center, 11/9 - 12/6/23
100-310-641000 341.83
11/22/2023 A SOURCE OF PRIDE 9110743 Operating Supplies, Nov '23 100-155-622000 36.61 Payables Detail Report Payment Dates: 11/03/2023 - 11/30/2023

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Attachment: Payables Detail Report - December 12, 2023 (3378 : Warrant Register, December 12, 2023) 12/4/2023 12:20:55 PM Page 8 of 9
100-310-626000 Subscriptions & Books 39.54 39.54
100-310-630100 Phone & Communication Comm 141.29 141.29 100-310-631100 Utilities - Electric Comm Ctr 12,515.71 12,515.71 100-310-641000 Rent/Lease - Equipment 868.31 868.31
100-310-690500 Insurance - Recreational Classes 172.50 172.50 100-310-613100 Vehicle-Fuel 227.89 227.89
100-310-620500 Office Supplies - Comm Ctr 30.68 30.68
100-310-622005 Operating Supplies Comm Ctr 340.96 340.96 100-310-622502 Supplies-Adult Leagues 180.00 180.00
100-310-624500 Advertising-Program Services 632.42 632.42 100-225-700000 Prof. Svcs - Building & Safety 33,926.28 33,926.28 100-225-700225 Housing Element 18,159.25 18,159.25
100-225-700227 Objective Design Standards 2,757.50 2,757.50 100-310-610000 Memberships and Dues Expense 366.00 366.00 100-310-611000 Training and Education 390.37 390.37
100-195-720050 Contract Serv-Software Support 18,623.18 18,623.18 100-195-940000 Computer Hardware & Software 1,363.68 1,363.68 100-225-611000 Training and Education 20.00 20.00
100-225-613100 Vehicle-Fuel 514.71 514.71
100-225-626000 Subscriptions & Books (11.04) (11.04)
100-195-621000 Computer Supplies 964.72 964.72
100-195-622000 Operating Supplies 516.46 516.46
100-195-630000 Telephone & Communication 5,836.14 5,836.14 100-195-641000 Rent/Lease - Equipment 530.22 530.22
100-195-700090 Computer Consulting Services 39,380.00 39,380.00 100-155-700011 Legal Services-Litigation 4,987.50 4,987.50 100-155-700030 Professional Svcs- City Clerk 8,388.00 8,388.00 100-155-700050 Professional Services - Financial 2,940.00 2,940.00 100-195-617000 Recruitment 231.00 231.00
100-195-620000 Office Supplies 105.20 105.20
100-155-622000 Operating Supplies 231.34 231.34
100-155-624001 Advertising - Legal 340.81 340.81
100-155-625000 Postage & Delivery 195.33 195.33
100-155-646100 Maint & Repairs - Vehicles 89.99 89.99
100-155-700000 Professional Services 9,750.00 9,750.00
100-000-460100 Parking Revenues 82.00 82.00
100-155-611000 Training and Education 550.00 550.00
100-155-611001 Staff Development & Team 2,186.57 2,186.57 100-155-612000 Travel, Conferences & Meetings 715.00 715.00 100-155-612001 Travel - League of CA Cities 2,082.16 2,082.16 100-000-222000 Refundable Deposits 1,250.00 1,250.00
100-000-223000 Plan Application Deposit 1,808.00 1,808.00 100-000-227001 Security Deposit - Waste 56,200.00 56,200.00 100-000-228001 Swimming Pool Bonds 3,000.00 3,000.00
100-000-229100 Trust Account - VALH Project - 392.00 392.00 600 - CAPITAL IMPROVEMENT PROJECT - -
Grand Total: 1,689,978.82 1,689,978.82
Account Summary
Account Number Account Name Expense Amount Payment Amount 100-000-201001 Accounts Payable - Retention (5,690.30) (5,690.30) 100-000-220444 Encroachment Grading 333.00 333.00
Fund Expense Amount Payment Amount
100 - GENERAL FUND 1,651,614.64 1,651,614.64
212 - MEASURE M 22,937.54 22,937.54
221 - SENIOR MOBILITY PROGRAM 1,165.00 1,165.00
306 - CR&R RECYCLING FEE 11,861.64 11,861.64
307 - C & D FORFEITED DEPOSITS 2,400.00 2,400.00
Payables Detail Report Payment Dates: 11/03/2023 - 11/30/2023 Report Summary
Fund Summary

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Attachment: Payables Detail Report - December 12, 2023 (3378 : Warrant Register, December 12, 2023) Grand Total: 1,689,978.82 1,689,978.82
Project Account Summary
Project Account Key Expense Amount Payment Amount
**None** 1,689,978.82 1,689,978.82
Grand Total: 1,689,978.82 1,689,978.82
12/4/2023 12:20:55 PM Page 9 of 9
306-355-700000 Professional Services 11,861.64 11,861.64 307-000-436000 Recycling Revenues 2,400.00 2,400.00
600-000-490100 Transfers In from General Fund (114,456.00) (114,456.00) 600-252-950237 Parks Refurbishment Project 113,806.00 113,806.00 600-255-950505 CIP - Civic Center Improvements 650.00 650.00 100-420-720835 Fingerprint Identification Svc 1,116.00 1,116.00 100-420-720850 Private Security Patrol 14,093.75 14,093.75 100-600-790600 Transfers Out to Capital 114,456.00 114,456.00 212-355-720400 Street Maintenance 22,937.54 22,937.54
221-310-720000 Contract Services 1,165.00 1,165.00
100-420-695000 CommunityAsstnc/PublicRelation 1,564.35 1,564.35 100-420-720401 Animal Care & Shelter Services 71,176.00 71,176.00 100-420-720800 General Law Enforcement 883,002.69 883,002.69 100-420-720822 Crossing Guard Services 7,274.40 7,274.40 100-420-720823 Parking Citation Processing 2,558.58 2,558.58 100-356-720420 MOE Traffic Signal Maintenance 36,413.11 36,413.11 100-420-613100 Vehicle-Fuel 512.86 512.86
100-420-622000 Operating Supplies 16.15 16.15
100-420-646000 Maint & Rep-Equip & Machinery 5,345.75 5,345.75 100-420-646100 Maint & Repairs - Vehicles 3.29 3.29
100-355-720701 Parks Contract Repair 18,880.82 18,880.82 100-355-720702 Tree Maintenance 11,945.70 11,945.70
100-355-910000 Equipment & Machinery 3,644.37 3,644.37
100-356-631400 MOE Electricity-Streetlights & 42,425.25 42,425.25 100-356-631900 MOE Electricity On-bill Financing 7,691.86 7,691.86 100-355-700250 On-Call Engineer Services 11,213.00 11,213.00 100-355-700255 Improvement Inspection 10,500.00 10,500.00 100-355-720401 Other Public Works Maintenance 8,431.38 8,431.38 100-355-720500 Graffiti Removal 3,069.75 3,069.75
100-355-720700 Landscape Maintenance Contract 92,199.97 92,199.97 100-355-622000 Operating Supplies 114.12 114.12
100-355-630000 Telephone & Communication 194.25 194.25
100-355-631000 Utilities - Electric 7,717.85 7,717.85
100-355-635000 Utilities - Water 36,188.61 36,188.61
100-355-646100 Maint & Repairs - Vehicles 85.44 85.44
100-310-720302 Contract Services - Homelessness 6,834.28 6,834.28 100-310-910500 Equip & Mach-CommCtr 6,130.94 6,130.94
100-355-610000 Memberships and Dues Expense 316.00 316.00 100-355-611000 Training and Education 50.00 50.00
100-355-613100 Vehicle-Fuel 553.64 553.64
100-310-695507 Marathon 5k (8.42) (8.42)
100-310-695508 July Fourth Celebration 1,598.90 1,598.90 100-310-695510 Holiday Event Series 124.75 124.75
100-310-695512 Movies in the Park 652.10 652.10
100-310-695531 Heritage Day 14,761.17 14,761.17
Payables Detail Report Payment Dates: 11/03/2023 - 11/30/2023 Account Summary
Account Number Account Name Expense Amount Payment Amount 100-310-695502 Special Needs Program 10.99 10.99
100-310-695505 Cultural Excursions 100.62 100.62

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Attachment: Payables Detail Report - December 12, 2023 (3378 : Warrant Register, December 12, 2023) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: December 12, 2023
TO: Mayor and Council Members
FROM: Eric Hendrickson
Finance Director
ISSUE: Treasurer's Investment Report for October 2023
RECOMMENDATION: That the City Council receive and file the Treasurer's Investment Report for the month of October 2023.

SUMMARY:

The Treasurer’s Investment Report for the month of October 2023 is submitted herewith. The City’s total portfolio as of October 31, 2023, was $27,216,617. The pooled cash portfolio managed by the City Treasurer consisted of cash on hand, demand deposits, State Local Agency Investment Fund (LAIF) and Investment Trust of California (CalTRUST) investments and totaled $25,576,539. Restricted cash and investments totaled $1,640,078, and is mainly comprised of reserve funds for the 2010 bond issuance.

Interest income for the month of October was $144,416. FY2023/2024 year-to-date pooled cash interest earnings of $419,160 are 89% of the annual budget of $467,910.

The average yield on the City’s total portfolio for the month of October was 5.01%, compared to the prior month of 4.91%. The improvement in portfolio yield in October compared to September was the result of the rising interest rate environment, as dictated by the Federal Reserve, along with City staff maximizing available cash into the higher yielding CalTRUST option.

ATTACHMENTS:
• Treasurer's Report October 2023

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Pooled Cash & Investments Market Value Book Value % of Portfolio Maximum
Policy Limit
Yield to
Maturity for
Month
(Annualized)
BMO Checking Accounts 213,095 $           $          213,095 1% n/a 0.75% Petty Cash 1,500                                    1,500 0% n/a 0.00% Petty Cash Recreation 500                                          500 0% n/a 0.00% Fiscal Agent Cash ‐ Essex Community Center Mgmt 160,029                          160,029 1% n/a 0.00% Fiscal Agent Cash ‐ DBI Flexible Spending Acct 15,156                                15,156 0% n/a 0.00% State Local Agency Investment Fund (LAIF) 5,610,201                    5,688,083 23% 75% 3.67% Investment Trust of California (CalTRUST) 19,498,176                19,498,176 75% 75% 5.53% 25,498,656        25,576,539 100% 5.04%
Restricted & Designated Cash & Investments
BNY Mellon (2010 Bond ‐ Lease Payment Fund) 1,065,747                    1,065,747 n/a n/a 4.98% BNY Mellon (2010 Bond ‐ Reserve Fund) 409,900                          409,900 n/a n/a 4.98% Cash with Fiscal Agent ‐ Essex Civic Center Mgmt 164,431                          164,431 n/a n/a 0.25% 1,640,078          1,640,078 4.51%
Totals $     27,138,734 $     27,216,617 5.01%
For the month of October 2023 $          144,416
FY 2023‐24 to Date             419,160
FY 2023‐24 Budget             467,910
Certification:

Eric Hendrickson
Finance Director/Deputy City Treasurer
City of Laguna Hills
Treasurer's Investment Report
October 2023
Pooled Cash & Investment ‐ Interest Earnings
I hereby certify that the above investment report includes all cash and investments of the City and is in conformance with all State laws and the City's investment policy approved by the City Council on December 13, 2022. At the time of the report, there is sufficient liquidity and anticipated revenues available to meet the City's budgeted expenditure requirements for the next six months.

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Attachment: Treasurer's Report October 2023 (3368 : Treasurer's Report for October 2023) Reconciling items (outstanding checks and deposits in transit):

Pooled Cash & Investments Book Value:

Fund Balance Type
Assigned
Unassigned
Total
847,881
20,803,684
21,651,566
GENERAL FUND RESERVES (as of most recent year end 6/30/2023 ‐ currently being audited) 25,576,539.00
21,119.65
456‐000‐101456 Claim on Cash ‐ Storm Drain/Slope Repair Reserve ‐ 31,770.82 31,770.82 TOTAL CLAIM ON CASH 25,769,238.66 (213,819.31) 25,555,419.35 454‐000‐101454 Claim on Cash ‐ Sports Complex Equipment Maint ‐ 120,000.00 120,000.00 455‐000‐101455 Claim on Cash ‐ Community Center Equipment Ma ‐ 120,000.00 120,000.00 451‐000‐101451 Claim on Cash ‐ Liability Self‐Insurance 210,029.87 (285.60) 209,744.27 452‐000‐101452 Claim on Cash ‐ Parks Equipment Maintenance ‐ 365,700.00 365,700.00 411‐000‐101401 Claim on Cash ‐ Public Art Fund 344,353.56 ‐ 344,353.56 421‐000‐101421 Claim on Cash ‐ Law Enforcement ‐ State 2,100.25 126,133.86 128,234.11 322‐000‐101322 Claim on Cash ‐ Water Conservation 352,753.22 ‐ 352,753.22 401‐000‐101401 Claim on Cash ‐ Public Art Fund 197,333.88 ‐ 197,333.88 311‐000‐101310 Claim on Cash ‐ Quimby ACT Park Impact Fee 2,053,640.48 ‐ 2,053,640.48 312‐000‐101312 Claim on Cash ‐ SB1186 ADA Compliance 31,458.30 (1,351.50) 30,106.80 306‐000‐101306 Claim on Cash ‐ CR&R Recycling Fee 235,563.78 (9,739.61) 225,824.17 307‐000‐101307 Claim on Cash ‐ C&D Forfeited Deposits 63,180.37 (19,339.00) 43,841.37 301‐000‐101301 Claim on Cash ‐ CARITS 1,310,716.79 ‐ 1,310,716.79 305‐000‐101305 Claim on Cash ‐ Beverage Recycling 8,777.88 ‐ 8,777.88 214‐000‐101214 Claim on Cash ‐ AB 2766 138,213.83 ‐ 138,213.83 221‐000‐101221 Claim on Cash ‐ Senior Mobility Program 220,607.58 (1,463.00) 219,144.58 211‐000‐101211 Claim on Cash ‐ SB1 RMRA 773,558.98 66,548.83 840,107.81 212‐000‐101212 Claim on Cash ‐ Measure M (177,181.24) 131,381.63 (45,799.61)

CLAIM ON CASH
100‐000‐101100 Claim on Cash ‐ General Fund 18,285,529.92 (660,019.41) 17,625,510.51 210‐000‐101210 Claim on Cash ‐ Gas Tax 1,081,130.39 154,314.49 1,235,444.88 Pooled Cash Report
City of Laguna Hills, CA
For the Period Ending 10/31/2023

BEGINNING

BALANCE

CURRENT

ACTIVITY

CURRENT
BALANCE ACCOUNT # ACCOUNT NAME

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Attachment: Treasurer's Report October 2023 (3368 : Treasurer's Report for October 2023)

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Attachment: Treasurer's Report October 2023 (3368 : Treasurer's Report for October 2023)

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Attachment: Treasurer's Report October 2023 (3368 : Treasurer's Report for October 2023) 11/14/23, 10:29 AM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209 0001
(916) 653-3001
November 14, 2023
LAIF Home
PMIA Average Monthly
Yields

CITY OF LAGUNA HILLS

CITY MANAGER
24035 EL TORO ROAD
LAGUNA HILLS, CA 92653
Account Number:

October 2023 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
10/4/2023 10/4/2023 RW 1739229 1699625 ERIC HENDRICKSON 900,000 00 10/13/2023 10/12/2023 QRD 1741506 N/A SYSTEM 52,419.20
10/13/2023 10/12/2023 RW 1741807 1699918 ERIC HENDRICKSON -200,000.00 10/27/2023 10/26/2023 RD 1742353 1702752 ERIC HENDRICKSON 1,000,000.00 Account Summary
Total Deposit: 1,052,419.20 Beginning Balance: 5,735,664.22 Total Withdrawal: -1,100,000.00 Ending Balance: 5,688,083.42

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Attachment: Treasurer's Report October 2023 (3368 : Treasurer's Report for October 2023) Current Period Year-to-Date
Go Paperless.Securely access your accounts online to view your statements. Ask your BNY Mellon contact how we can help you accessyour account balances and activity in real time, receive your reports, enter your own transactions or submit an auditconfirmation online. Also be sure to ask how NEXEN(SM) Gateway, our new cloud-based ecosystem, can help you.Visit us at www.bnymellon.com CLIENT SERVICE MANAGER: JOHN KIM
Percent of all
Investments Asset Classification Market Value
100% TOTAL OF ALL INVESTMENTS 1,065,747.19
Estimated Market
Asset Classification Market Value Cost Accrued Income Annual Income Yield ACCOUNT TOTALS 1,065,747 .19 1,065,747 .19 0.00 53,058.12 4.98 % Realized
Transaction Category Income Principal Gains/Losses Income PrincipalOPENING BALANCE 0.00 0.00 0.00 0.00 Account Statement
Account Overview
Summary of Assets Held by Asset ClassificationSummary of Cash Transactions by Transaction Category Statement Period 10/01/2023 Through 10/31/2023Account Base Currency = USDLAGUNA HILLS 2010 LEASE PYMT FDBNYM COPORATE TRUST, N.A333 S. HOPE ST. STE 2525LOS ANGELES, CA [email protected] 100% CASH AND SHORT TERM 1,065,747.19
CASH AND SHORT TERM 1,065,747 .19 1,065,747 .19 0.00 53,058.12 4.98 %DIVIDENDS 4,322.33 0.00 0.00 41,440.97 0.00SALES AND REDEMPTIONS 0.00 0.00 0.00 0.00 382,481 .26 OTHER CASH ADDITIONS 0.00 4,322.33 0.00 0.00 41,440.97OTHER CASH DISBURSEMENTS 4,322.33 - 0.00 0.00 41,440.97 - 382,481 .26 -

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e 091776 n 077725 a 02 t DOM i WI s 308,055

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Attachment: Treasurer's Report October 2023 (3368 : Treasurer's Report for October 2023) Current Period Year-to-Date
Go Paperless.Securely access your accounts online to view your statements. Ask your BNY Mellon contact how we can help you accessyour account balances and activity in real time, receive your reports, enter your own transactions or submit an auditconfirmation online. Also be sure to ask how NEXEN(SM) Gateway, our new cloud-based ecosystem, can help you.Visit us at www.bnymellon.com CLIENT SERVICE MANAGER: JOHN KIM
Percent of all
Investments Asset Classification Market Value
100% TOTAL OF ALL INVESTMENTS 409,899.58
Estimated Market
Asset Classification Market Value Cost Accrued Income Annual Income Yield ACCOUNT TOTALS 409,899 .58 409,899 .58 0.00 20,406.81 4.98 % Realized
Transaction Category Income Principal Gains/Losses Income PrincipalOPENING BALANCE 0.00 0.00 0.00 0.00 Account Statement
Account Overview
Summary of Assets Held by Asset ClassificationSummary of Cash Transactions by Transaction Category Statement Period 10/01/2023 Through 10/31/2023Account Base Currency = USDLAGUNA HILLS 2010 RESERVE FDBNYM COPORATE TRUST, N.A333 S. HOPE ST. STE 2525LOS ANGELES, CA [email protected] 100% CASH AND SHORT TERM 409,899.58
CASH AND SHORT TERM 409,899 .58 409,899 .58 0.00 20,406.81 4.98 % DIVIDENDS 1,662.41 0.00 0.00 10,433.00 0.00OTHER CASH ADDITIONS 0.00 1,662.41 0.00 0.00 408,559 .80 OTHER CASH DISBURSEMENTS 1,662.41 - 0.00 0.00 10,433.00 - 0.00PURCHASES 0.00 1,662.41 - 0.00 0.00 408,559 .80 -

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e 091777 n 077726 a 02 t DOM i WI s 308,059

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Attachment: Treasurer's Report October 2023 (3368 : Treasurer's Report for October 2023)

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Attachment: Treasurer's Report October 2023 (3368 : Treasurer's Report for October 2023) October 3.670
September 3.534
August 3.434
July 3.305**
June 3.167
May 2.993
LAIF Apportionment Rate(2): 3.59
LAIF Earnings Ratio(2): 0.00009812538629360
LAIF Administrative Cost(1)*: 0.29
PMIA Average Life(1): 256
LAIF Fair Value Factor(1): 0.986307739
PMIA Daily(1): 3.48
PMIA Quarter to Date(1): 3.42
Treasuries

64.37%
Agencies

20.72%
Certificates of
Deposit/Bank Notes

7.03%
Time
Deposits

3.35%
Commercial
Paper

4.01%
Corporate
Bonds

0.28%
Loans

0.24%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year. ** Revised
Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 11/08/23
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 09/30/23
Chart does not include $2,444,000.00 in mortgages, which equates to 0.002%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
09/30/23
$156.4 billion

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Attachment: Treasurer's Report October 2023 (3368 : Treasurer's Report for October 2023) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: December 12, 2023
TO: Mayor and Council Members
FROM: Eric Hendrickson
Finance Director
ISSUE: Financial Statements for Fiscal Year Ending June 30, 2023 RECOMMENDATION: That the City Council receive and file the Annual Comprehensive Financial Report and other audit reports for fiscal year 2022/2023.

SUMMARY:

The certified public accounting firm of Eide Bailly was engaged by the City to perform the audit of the City’s financial statements and render an opinion as to whether the City’s fiscal year 2022/2023 financial statements are presented fairly in all material respects. Attached to this report are the final audit reports issued by the auditors.

In the opinion of the auditors, the attached financial statements present fairly, in all material respects, the financial position of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with generally accepted accounting principles.

The financial section, which is the focal point of the Annual Comprehensive Financial Report (ACFR), is comprised of the independent auditors’ report, management’s discussion and analysis, and the financial statements. Along with the ACFR, are the other audit reports, including the Gann Appropriations Limit AUP, Governance Letter, and Single Audit Report.

The City's General Fund ended the year on a positive note, with revenues exceeding

4.6 Packet Pg. 46
Financial Statements for Fiscal Year Ending June 30, 2023 December 12, 2023

Page 2 ends

expenditures by $7,871,198. This increase brought the General Fund balance total to $21,665,647 as of June 30, 2023. These results are attributable to better than expected property tax and sales tax receipts, City staff monitoring expenditures, community benefit fees collected from the Village at Laguna Hills project, and the influx of cash from the final payment of the American Rescue Plan money.

ATTACHMENTS:
• City of Laguna Hills 2023 Final ACFR
• City of Laguna Hills 2023 Final GANN Limit AUP Report • City of Laguna Hills 2023 Final Governance Letter
• City of Laguna Hills 2023 Final Single Audit Report

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Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2023
California

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023)

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Annual Comprehensive Financial Report
Year Ended June 30, 2023
City Manager
Jarad Hildenbrand
Finance Director
Eric Hendrickson

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023)

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Table of Contents
June 30, 2023

INTRODUCTORY SECTION
Letter of Transmittal................................................................................................................................................i Organizational Chart............................................................................................................................................ viii City Officials...........................................................................................................................................................ix City Executive Staff................................................................................................................................................ix Certificate of Achievement for Excellence in Financial Reporting (GFOA).............................................................x

FINANCIAL SECTION
Independent Auditor’s Report .................................................................................................................................. 1 Management’s Discussion and Analysis.................................................................................................................... 5 Basic Financial Statements
Government Wide Financial Statements
Statement of Net Position................................................................................................................................... 18 Statement of Activities........................................................................................................................................ 19 Fund Financial Statements
Balance Sheet ‐ Governmental Funds ................................................................................................................. 21 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position............................ 22 Statement of Revenues, Expenditures and Changes in Fund Balances............................................................... 23 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities........................................................................................... 24 Proprietary Fund Financial Statements
Statement of Net Position – Proprietary Fund.................................................................................................... 25 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Fund............................... 26 Statement of Cash Flows – Proprietary Fund...................................................................................................... 27 Notes to Financial Statements ................................................................................................................................ 28 Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability............................................................................ 61 Schedule of Contributions................................................................................................................................... 62 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund ....................................................................................................................................................... 63 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – ARPA Special Revenue Fund................................................................................................................................ 64 Note to Required Supplementary Information ....................................................................................................... 65

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Table of Contents
June 30, 2023
Supplementary Information
Non‐Major Governmental Funds – Special Revenue:

Combining Balance Sheet.................................................................................................................................... 69 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances........................................... 76 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Capital Projects Fund – Major Fund .................................................................................................................... 83 Gas Tax Special Revenue Fund ............................................................................................................................ 84 Measure M Special Revenue Fund ...................................................................................................................... 85 SB1 RMRA Special Revenue Fund........................................................................................................................ 86 AB 2766 Special Revenue Fund ........................................................................................................................... 87 Senior Mobility Program Special Revenue Fund ................................................................................................. 88 CDBG Special Revenue Fund ............................................................................................................................... 89 Beverage Recycling Special Revenue Fund.......................................................................................................... 90 CR&R Recycling Special Revenue Fund................................................................................................................ 91 C & D Forfeited Deposits Special Revenue Fund................................................................................................. 92 SB 1383 Grant Special Revenue Fund.................................................................................................................. 93 CASp Special Revenue Fund ................................................................................................................................ 94 Grants and Contributions Special Revenue Fund................................................................................................ 95 Public Art VALH MGP Special Revenue Fund....................................................................................................... 96 SLESF/COPS BRULTE Special Revenue Fund ........................................................................................................ 97 Debt Service Fund................................................................................................................................................ 98

STATISTICAL SECTION
Financial Trends:

Net Position by Component .......................................................................................................................... 100 Changes in Net Position................................................................................................................................. 102 Governmental Activities Tax Revenues By Source ........................................................................................ 106 Fund Balances of Governmental Funds......................................................................................................... 107 Changes in Fund Balances of Governmental Funds ...................................................................................... 109 Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property ................................................................ 111 Assessed Value of Property by Use Code, Citywide ...................................................................................... 112 Direct and Overlapping Property Tax Rates.................................................................................................. 114 Principal Property Taxpayers......................................................................................................................... 116 Property Tax Levies and Collections.............................................................................................................. 117 Principal Sales Tax Producers........................................................................................................................ 118

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Table of Contents
June 30, 2023
Debt Capacity:

Ratios of Outstanding Debt by Type.............................................................................................................. 119 Ratios of General Bonded Debt Outstanding ................................................................................................ 120 Direct and Overlapping Governmental Activities Debt................................................................................. 121 Legal Debt Margin Information ..................................................................................................................... 122 Pledged Revenue Coverage........................................................................................................................... 124 Demographic and Economic Information:

Demographic and Economic Statistics .......................................................................................................... 125 Principal Employers....................................................................................................................................... 126 Operating Information:

Full‐time Equivalent Personnel Allocation by Function ................................................................................ 127 Operating Indicators by Function.................................................................................................................. 128 Capital Asset Statistics by Function............................................................................................................... 129 City at a Glance...................................................................................................................................................... 130

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Introductory Section

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) December 1, 2023
Honorable Mayor, Council Members, and Residents of
the City of Laguna Hills:
he Annual Comprehensive Financial Report (ACFR) of the
City of Laguna Hills for the fiscal year ended June 30, 2023, is submitted herewith. This report is published in accordance with local ordinance and State law
requirements that financial statements be presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by an independent public accounting firm of licensed certified public accountants.

This report consists of management’s representations concerning the finances of the City of Laguna Hills. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City’s management. It is management’s opinion that the data is accurate in all material aspects, is presented in a manner designed to fairly set forth the financial position and results of operations of the City, and contains all disclosures necessary to enable the reader to gain an understanding of the City’s financial affairs. To provide a reasonable basis for making these representations, management has
established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, misuse, and to compile sufficient reliable information for the preparation of the financial statements in conformity with GAAP.

Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of material misrepresentation. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds of the City, as well as the City as a whole.

T
i

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) The City’s financial statements have been audited by Eide Bailly, LLP, a public accounting firm fully licensed and qualified to perform audits of local government. The independent auditors concluded that there was a reasonable basis for rendering an unmodified opinion on the City’s financial statements and that the financial statements present fairly, in all material respects, the financial condition of the City at the end of this fiscal year.

A narrative introduction, overview and analysis of the basic financial statements for the City for the fiscal year ended June 30, 2023, is discussed in the Management’s Discussion and Analysis (MD&A), which immediately follows the independent auditor’s report. The MD&A is designed to complement this letter of transmittal and should be read in conjunction with it.

PROFILE OF THE CITY OF LAGUNA HILLS
The City of Laguna Hills is located in South Orange County approximately 60 miles south of Los Angeles and 70 miles north of San Diego. Incorporated in 1991 under the laws of the State of California, it enjoys all the rights and privileges pertaining to “General Law” cities. The City is home to approximately 30,525 residents and over 1,300 businesses.

The City operates under a Council-Manager form of government.

Policymaking and legislative authority are vested in the City Council, which consists of a Mayor and a four-member Council. The Mayor is annually selected by the City Council from among its membership, and serves a one-year term. The governing Council is responsible, among other things, for passing the City’s ordinances and operating resolutions, adopting the biennial budget, appointing commissions and committees, retaining the City Attorney and hiring the City Manager. The City Manager is the chief executive officer of the City and administers the daily operations and programs of the City through department heads, other staff members and contracted services.

The City contracts for selected municipal services utilizing agreements with other governmental entities, private firms and individuals. Police services are provided by the Orange County Sheriff’s Department and fire services are provided through the Orange County Fire Authority, of which the City is a member.

Although the majority of the area in the City has a distinctive residential character, the City has a strong commercial base, ii

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) specifically in the northern section of the City. This commercial area, or “Urban Village,” is anchored by the regional Village at Laguna Hills, the Oakbrook Village Shopping Center, and the Saddleback Memorial Medical Center. In addition, the area north of the Village at Laguna Hills holds a complement of commercial, retail and office mixed-uses.

FACTORS AFFECTING FINANCIAL CONDITION
Faced with the COVID-19 pandemic and its economic fallout several years ago, the City has remained resilient and adaptable to the everchanging situation. Government-mandated shutdowns and stay-athome orders in 2020 were followed by high unemployment, supply chain issues, and global uncertainty in all markets. Soon thereafter, government stimulus funds, like the CARES Act and American Rescue Plan, helped prop the economy up and allowed
unemployment rates to drop. However, the large influx of cash into the financial system have caused massive spikes in inflation.

Orange County saw its unemployment rate rise from 2.8 percent in February 2020 to a high of 14.7 percent in May 2020, before dropping to 6.9 percent in June 2021. In Fiscal Year 2021-2022, the unemployment rate dropped even more, to 3.2 percent as of June 2022. It has slightly increased as of June 2023 to 3.7 percent.

Overall, the pandemic has dramatically upended nearly every aspect of life. The resilience of the Southern California region indicates, however, that just as after the Great Recession, the region has recovered. Unquestionably, the pandemic, inflation, and the associated economic impacts remain a fluid situation. Many economists are worried of an economic recession, given the challenges with inflationary prices, the tight labor market, an inverted yield curve on U.S. Treasury notes, and the likelihood that no further Federal stimulus funds are forthcoming. As a result, the Southern California region’s economic situation remains uncertain.

To maintain its strong financial position into the future, the City must continue to promote overall fiscal health and sustainability by adhering to its conservative financial policies, focusing on organizational efficiency and performance, and fiscally prudent decision-making. This financially conservative stance has played a critical role in allowing the City to respond quickly to difficulties that were prevalent in the economy as a result of the coronavirus pandemic, as well as to the previous economic downturn during the years of the Great Recession.

ECONOMIC

CONDITIONS &

OUTLOOK
iii

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) The City utilizes a customized 8-Year Resource Allocation plan that is specifically designed to project the City’s operating and reserve policy ratios over an eight-year forecast horizon. The City’s policy is to strive to maintain an operating ratio of 1.1 to 1.0, and an Unassigned General Fund Balance Ratio of 35% as compared to General Fund operating expenditures. Both of these benchmarks were achieved as of June 30, 2023. The operating ratio for FY 2022- 23 came in at 1.20 and the Unassigned Fund Balance ratio was 91%.

In developing the City’s accounting system, consideration was given to the adequacy of internal accounting controls, which are designed to provide reasonable, but not absolute, assurance in connection with: (1) the safeguarding of assets against loss from unauthorized use or disposition, and (2) the reliability of financial records for preparing financial statements and maintaining
accountability for assets. All internal control evaluations occur within the above framework. We believe the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

Furthermore, the City maintains budgetary controls to ensure compliance with the legal provisions embodied in the annual appropriated budget approved by the City Council. The City Manager is authorized to transfer budgeted amounts within and between funds as deemed necessary in order to meet the City’s needs. Revisions that exceed the appropriated budget must be approved by the City Council.

The City invests its temporary idle cash in investments authorized under the City’s prevailing Investment Resolution and Policies, which are reviewed and approved annually. These policies are significantly more restrictive than State law, limiting investments to a maturity of one year or less. The City’s investments at the close of the most recent fiscal year ended June 30, 2023, consisted of fully insured or collateralized certificates of deposit with qualified banks, money market mutual funds, and investment pools with the State Treasurer’s Local Agency Investment Fund (LAIF) and Investment Trust of California (CALTrust).

Generally, only assets which cost $20,000 or more and which have a useful life of five years or more are considered capital assets. This designation is extensively discussed in the City’s Internal Control Policies and Procedures for Capital Assets and Minor Equipment, which were developed for the City’s compliance with the requirements with GASB 34.

LONG TERM

FINANCIAL PLANNING

ACCOUNTING SYSTEM

AND BUDGETARY

CONTROLS

CASH MANAGEMENT

CAPITAL ASSETS
iv

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023)

MAJOR INITIATIVES
The following section provides a sampling of some of the various initiatives and highlights occurring throughout the 2022-2023 fiscal year:

In March of 2016, the City approved a plan for the renovation of the Laguna Hills Mall which included approximately 860,000 square feet of new and renovated commercial retail space, movie theaters, restaurants, and 988 residential units. The approved plan was known as Five Lagunas. In 2018, the property owner of Five Lagunas, Merlone-Geier Partners (MGP), informed City staff that they could not move forward with the approved 2016 plan. On November 4, 2019, MGP submitted a new application to redevelop the site. The new project, named “The Village at Laguna Hills”, was presented to the City Council by MGP at the November 12, 2019, City Council meeting.

On March 8, 2022, the City Council and Planning Agency approved “The Village at Laguna Hills” project. This project consists of demolition of the remaining mall property and buildings, along with development and construction of new retail buildings, residential buildings, a hotel, parking structures, and other infrastructure. As of June 30, 2023, the project is still under demolition. Plans for installing utility functions and infrastructure are the next significant phase. It is estimated to take many years before this major project is complete.

The California Department of Resources Recycling and Recovery (“CalRecycle”) finalized regulations for the implementation of Senate Bill (“SB”) 1383 in November 2020. SB 1383 requires local governments to reduce organic waste being sent to landfills. City staff began a concerted work effort in early 2021 to implement the requirements of SB 1383 and CalRecycle. Some of these efforts include:
● Negotiate a new contract with the City’s Franchise Waste Hauler, CR&R.
● Implement new and/or revised trash and recycling service fees.
● Establish an enforcement ordinance and policies to meet the requirements of SB 1383.
● Community outreach and education on the requirements of SB 1383.

THE VILLAGE AT

LAGUNA HILLS
(FORMERLY FIVE

LAGUNAS)
SB 1383 ORGANIC

WASTE REDUCTION

IMPLEMENTATION

WORK EFFORT
v

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Financial Section

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) What inspires you, inspires us. | eidebailly.com
25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE 1 Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Laguna Hills
Laguna Hills, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of the City of Laguna Hills, California (City) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of proportionate share of the net pension liability, the schedule of contributions ‐ defined benefit pension plans, and the schedule of revenues, expenditures and changes in fund balance ‐ budget and actual ‐ general fund and major special revenue funds, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 3 consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor funds financial statements, and budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor funds financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Laguna Hills, California
December 1, 2023

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Management’s Discussion and Analysis

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 5 MANAGEMENT’S DISCUSSION AND ANALYSIS The management of the City of Laguna Hills offers the readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with the accompanying transmittal letter on page i and the basic financial statements in the appropriate section.

Financial Highlights
Government‐Wide
 The net position of the City of Laguna Hills at the close of the most recent fiscal year was $108,108,516. Of this amount, $18,078,640 is not restricted to a specific use or purpose.  The net change in the City’s net position resulting from the most recent fiscal year’s operation was an increase of $9,842,181, or 10.0%. The net position of governmental activities was $102,902,921 as of June 30, 2023, for an increase of $10,404,969, while Business‐type activities decreased the City’s net position by $562,788, for a total net position of $5,205,595.  Total revenues from all sources were $37,584,151. Of this amount, $14,274,070, or 38.0%, was from program revenues and $23,310,081, or 62.0%, was from general revenues.  The total cost of all City programs and projects was $27,741,970. Approximately 36.4%, or $10,106,055, of this amount is attributable to public safety; 27.7%, or $7,674,208, is attributable to public works; and, 16.5%, or $4,577,936, to general government.  The net pension liability reported as of June 30, 2023, for the City’s proportionate share of the net pension liability of all pension plans, was $5,599,726. Deferred inflows of resources related to pension plans was $593,668; and deferred outflows of resources related to pension plans was $3,018,357.

Fund Based
 As of the close of the current fiscal year, the governmental funds reported combined ending fund balances of $29,868,312.
 Total nonspendable fund balances, amounts that are either not in spendable form or are legally or contractually required to be maintained, were $105,889.  Totalspendable fund balances were $29,762,423. Of this amount, approximately 2.9% ($847,881 in total assigned) is constrained by the City’s intent to be used for a specific purpose and 27.6% ($8,202,665 in total restricted) is constrained in their use by external restrictions, such as by creditors, debt covenants, grantors, contributors, or by laws and regulations. This leaves a residual of $20,711,877 in unassigned fund balance for the City’s General Fund.  Total governmental fund balances increased by $12,012,296.  At the end of the most recent fiscal year, the total fund balance for the General Fund was $21,665,647, an increase of $7,871,198 over prior year.  General Fund reported revenues exceeding expenditures by $4,645,698.

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 6 Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Laguna Hills’ basic financial statements. The City’s basic financial statements comprise three components: 1) government‐ wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statement themselves.
(1) Government‐wide financial statements. These statements are designed to provide readers with a broad overview of the City of Laguna Hills’ financial position, in a manner similar to a private‐sector business, using the economic resources measurement focus and the full accrual basis of accounting.

The following reports comprise the government‐wide financial statements:
a) Statement of Net Position. This report presents information on all the assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position. The difference between the assets and deferred outflows, on one hand, and liabilities and deferred inflows of resources, on the other hand, constitutes the net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or weakening, though it is important to consider other non‐financial factors in accurately assessing the overall health of the City, such as the property tax base or condition of the roads, etc. b) Statement of Activities. The information presented in this report shows how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenditures are reported in this statement for some items that will only result in cash flows in future fiscal periods.

Both of these government‐wide financial statements distinguish functions of the City that are principally supported by taxes, program revenues, and intergovernmental revenues (referred to as governmental activities), from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (referred to as business‐type activities).

The governmental activities of the City of Laguna Hills include general government, public works, community development, community services and public safety. Property taxes, sales and use taxes, transient occupancy taxes, and franchise fees finance most of these activities.

The business‐type activity of the City of Laguna Hills pertains to the leasing of certain areas in the Laguna Hills Civic Center, which also houses City Hall.

The government‐wide financial statements can be found on pages 18 to 20 of this report.

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 7 (2) Fund financial statements. These statements show how City services were financed in the short term as well as what remains for future spending. These statements also report the City’s operation in more detail than the government‐wide statements by providing information about the City’s most significant funds, but not the City as a whole. Funds are required to be established, either by State or Federal laws, in order to meet legal responsibilities associated with the usage of certain taxes, grants, and other money. There are three types of funds, of which, the City has two types:
a) Governmental funds. The City maintains 22 individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, ARPA Special Revenue Fund, and Capital Projects Fund, all of which are considered to be major funds.

Data from the other governmental funds are combined into a single, aggregated presentation.

Individual fund data for each non‐major governmental fund is provided in the form of combining statements elsewhere in this report.
b) Proprietary funds. When the City charges for the services it provides, other than those services associated with the City’s general governmental operations, these services are generally reported in proprietary funds. The proprietary fund is used to report the same function presented as the business‐type activity in the government‐wide financial statements. The City uses the proprietary fund to account for its Civic Center leasing activity.

The fund financial statements focus on the near‐term inflows and outflows of spendable resources, as well as on balances of spendable resources at the end of the fiscal year. Such information provides a short‐term view of the City’s general government operations and shows whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can be readily converted to cash. The relationship between governmental activities and the governmental funds are reported in the reconciliation of government‐wide and fund financial statements and in Note 1 in the Notes to the Basic Financial Statements.

The fund financial statements can be found on pages 21 to 27 of this report. (3) Notes to the basic financial statements. The notes provide additional information essential to a full understanding of the data provided in the government‐wide and fund financialstatements. The notes to the basic financial statements can be found on pages 28 to 60 of this report. (4) Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information including budgetary comparisons for the General Fund and ARPA Special Revenue Fund, a schedule of proportionate share of the net pension liability, and a schedule of employer plan contributions. Additionally, the combining statements referred to earlier in connection with non‐major governmental funds are presented immediately following the required supplementary information.

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 8 Government –Wide Financial Analysis
The City’s combined net position at the close of the most recent fiscal year ended June 30, 2023, was $108,108,516, as shown on Table 1 below. The City is able to report positive balances in all three categories of net position for the government as a whole, as well as for its separate governmental and business‐type activities. The same situation held true for the prior fiscal year.

Table 1
Condensed Statement of Net Position
(in thousands)
Governmental Business‐Type
Activities Activities Totals
2022 2023 2022 2023 2022 2023
Current and other assets $ 21,218 $ 32,821 $ 1,615 $ 1,445 $ 22,833 $ 34,266 Capital assets 79,469 77,651 5,556 4,988 85,025 82,639 Total assets 100,687 110,472 7,171 6,433 107,858 116,905 Total deferred outflows 1,224 3,064 ‐ ‐ 1,224 3,064 Long‐term liabilities 3,654 6,395 ‐ ‐ 3,654 6,395 Other liabilities 2,845 2,967 94 76 2,939 3,043 Total liabilities 6,499 9,362 94 76 6,593 9,438 Total deferred inflows 2,914 1,271 1,309 1,152 4,223 2,423 Net position:

Net investment in capital assets 79,982 76,839 5,556 4,988 85,538 81,827 Restricted 4,227 8,203 ‐ ‐ 4,227 8,203
Unrestricted 8,289 17,861 212 217 8,501 18,078 Total net position $ 92,498 $ 102,903 $ 5,768 $ 5,205 $ 98,266 $ 108,108

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 9 By far the largest portion of the City’s net position (roughly $81.8 million, or 75.7% of total net position) reflects its net investment in capital assets, which is made up of: (1) capital assets (land, building, machinery, and equipment) less accumulated depreciation, any related debt used to acquire those assets that are still outstanding, and the unamortized bond premium, (2) outstanding deferred loss on refunding, and (3) the cash with fiscal agent held in reserve to secure the timely payment of principal and interest on the capital asset related debt. The City uses these capital assets to provide services to citizens.

Consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt and corresponding items, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. There is $857,396 in debt outstanding (including the unamortized debt premium) related to the acquisition and construction of these capital assets.

Another portion of the City’s net position, $8,202,665 (7.6% of the total net position), represents resources that are subject to external restrictions on how they may be used. The remaining balance of the City’s net position is unrestricted net position of $18,078,640 (16.7% of the total net position), which may be used to meet the City’s ongoing obligations to its citizens and creditors.

The City’s combined total assets at the close of the fiscal year was $116,905,349. Of this amount, $110,472,103, or 94.5%, represents assets from governmental activities and $6,433,246, or 5.5%, represents assets from business‐type activities. By far the largest component of the City’s combined total assets is in the form of capital assets at $82,639,012, or 70.7%. The remaining $34,266,337 of combined total assets is largely in the form of cash and investment of $27,636,027 and restricted cash and investments of $1,467,163.

At the end of the fiscal year, the City’s combined total liabilities was $9,437,795, which was largely in the form of long‐term liabilities of the City’s government activities at $7,073,522, or 75.0%. Long‐term liabilities were mainly comprised of the City’s net pension liability of $5,599,726, or 79.2%, and $857,396, or 12.1%, in debt pertaining to Certificates of Participation for the 2010 Refinancing Project.

Deferred inflows and outflows reported in the Statement of Net Position represent an acquisition (revenue) or consumption (expense) of net position that applies to a future period and hence will not be recognized as an inflow or outflow of resources until that time. The reported deferred inflows of $2,422,990 and deferred outflows of $3,063,952 pertain to the City’s pension liability and leases. More information on the City’s pension plan can be found in Note 8, beginning on page 50 of this report.

The details of the changes in the City’s Net Position are shown in Table 2 on the following page.

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 10 Table 2
Statement of Changes in Net Position
(in thousands)
Governmental Business‐type
Activities Activities Totals 2022 2023 2022 2023 2022 2023
Revenues:

Program Revenues:

Charges for services $ 2,501 $ 6,410 $ 706 $ 755 $ 3,207 $ 7,165 Operating contributions 6,294 4,602 ‐ ‐ 6,294 4,602 Capital contributions 239 2,507 ‐ ‐ 239 2,507
General Revenues:

Property taxes 12,341  13,069 ‐ ‐ 12,341  13,069 Sales and use taxes 6,941  6,930 ‐ ‐ 6,941  6,930 Franchise taxes 1,252 1,327 ‐ ‐ 1,252 1,327
Transient occupancy taxes 1,021  1,123 ‐ ‐ 1,021  1,123 Motor vehicle in lieu taxes 36  32 ‐ ‐ 36  32
State subvention ‐ 81 ‐ ‐ ‐ 81
Interest earnings (117)  637 ‐ ‐ (117)  637
Miscellaneous revenues 133 111 ‐ ‐ 133 111
Total revenues 30,641 36,829 706 755 31,347 37,584
Expenses:

General government    3,319  4,578 ‐ ‐ 3,319  4,578 Public works    6,849 7,674 ‐ ‐ 6,849 7,674
Community development    1,763 1,406 ‐ ‐ 1,763 1,406 Community services    4,028 2,573 ‐ ‐ 4,028 2,573 Public safety    9,006 10,106 ‐ ‐ 9,006 10,106
Property leasing    ‐ ‐ 1,397 1,418 1,397 1,418 Interest    40 (13) ‐ ‐ 40 (13)
Total expenses    25,005 26,324 1,397 1,418 26,402 27,742 Change in net position before
transfers              5,636 10,505 (691) (663) 4,945 9,842 Transfers    ‐ (100) ‐ 100 ‐ ‐
Change in net position    5,636 10,405 (691) (563) 4,945 9,842 Net position, beginning        86,862     92,498   6,459   5,768   93,322 98,266 Net position, ending  $ 92,498 $ 102,903 $ 5,768 $ 5,205 $ 98,266 $ 108,108

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 11 During the fiscal year, the total revenue from allsources was $37,584,151 and the cost of all activities was $27,741,970, resulting in an overall increase in net position of $9,842,181. The City’s governmental activities increased total net position by $10,404,969 and its business‐type activities decreased total net position by $562,788.

The revenue sourcesfrom governmental activities presented in the preceding table are illustrated in a pie chart shown below as Figure 1, which illustrates the percentage relationship of these revenues to each other, as well as their impact on the City’s total resources.

Figure 1
Revenue by Sources – Governmental Activities
FY 2022‐23

As shown in the above pie chart, roughly 61.1%, or $22,448,828 of the City’stotal governmental revenues are from taxes, comprised of property, sales and use, motor vehicle in lieu, franchise and transient occupancy taxes. Program revenues totaled $13,519,157, or 36.8%, of the total revenue resources, which is comprised of chargesforservices, operating contributions and capital contributions. Increasesfrom the prior year in property taxes, franchise fees, and transient occupancy taxes were realized in Fiscal Year 2022‐23. Charges for services increased 156.3% over the prior year – increasing from $2,501,187 to $6,409,891. This is primarily due to the collection of Community Benefit fees ($1.6 million) and developer park in‐lieu fees ($2.0 million). Investment earnings improved by 642.8% over the prior year – increasing from ($117,321) to $636,875. This increase is mainly due to higher interest rates resulting in higher earnings in the current fiscal year. In addition, there was a positive fair market value adjustment at June 30, 2023, compared to the negative fair market value adjustment at June 30, 2022.

The City’s expenses in connection with its governmental activities are categorized by function, namely:
general government, public services, community development, community services and public safety. The Property taxes
36%
Sales and use taxes
Transient occupancy 19%
taxes
3%
Franchise taxes
4%
Charges
for
services
17%
Operating
contributions
12%
Capital
contributions
7%
Miscellaneous
revenues
2%

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 12 program revenues associated with these governmental activities are classified into three categories, which are charges for services, operating contributions, and capital contributions. The relationship of the City’s program revenues to the related governmental functions are illustrated in a graph shown as Figure 2 on the following page.

Expenses associated with governmental activities experienced an overall increase of 5.3%, or $1,319,487 over the prior fiscal year, primarily due to increases in the Orange County Sheriff contract costs. The overall increase is largely attributable to increases in General Government activity of $1,259,246, Public Safety of $1,100,189, and Public Works of $824,929.

The City’s business‐type activities for the leasing of the Civic Center decreased total net position by $562,788. The decrease from business‐type activities is largely attributable to depreciation. Of the $1,417,830 of total operating expenses related to property leasing activities, depreciation represents

41.3%, or $585,980, of that total.

Program Revenues and Expenses:

Program revenues for the most recent fiscal year were $13,519,157. Expenses related to governmental activities were $26,324,140. The program revenues are generally not adequate to finance the governmental programs, so it is typical for governmental expenses to be subsidized by general revenues.

The City’s expenses for public services and public safety are comparatively higher than the other expense categories, as shown in Figure 2 below.

Figure 2
Business‐typ e Activities
The City’s business‐type activity involves the leasing of rentable areas in the Civic Center building. This 3‐ story building complex was renovated to accommodate the City offices and to add leasable spaces. Since June 28, 2004, the City government has operated from this facility. Altogether, there are 51,945 square feet of leasable office space in the Civic Center building. The City occupies 21,033 square feet and leases out 30,912 square feet. The occupancy rate was approximately 88% on June 30, 2023. -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
General
government
Public works Community
development
Community
services
Public safety Interest expenses
Funding of Governmental Activities
FY 2022-2023
Charges for services Operating contributions Capital contributions General revenues

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 13 During the most recent fiscal year, the operating revenues of the Laguna Hills Civic Center were $754,913 and the operating expenses were $1,417,830, resulting in a net operating loss of $662,917, which is largely attributable to depreciation charge of $585,980. After interest income of $129 and a transfer in of $100,000 from the governmental activities, the change in net position at fiscal year‐end was $(562,788).

The net cash provided by the leasing operating activities was $23,192. The contra rent revenue associated with the occupied spaces for City Hall was $549,965 for the current fiscal year.

Analysis of Major Funds
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities and objectives. As noted earlier, the City of Laguna Hills uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements.

Governmental funds:

Governmental funds are used to account for essentially the same functionsreported as governmental activities in the government‐wide financial statements. However, unlike the government‐wide financial statements, the focus of the governmental funds is to provide information on near‐term inflows and outflows, as well asthe balances ofspendable resources at the end of the fiscal year. Such information is useful in assessing the City of Laguna Hills’ near term financing requirements. In particular, fund balances of the governmental funds are reported separately within classifications based on a hierarchy of constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, committed, assigned, and unassigned fund balance.

As of the end of the current fiscal year, the City’s governmental fundsreported combined ending fund balance of $29,868,312, an increase of $12,012,296 from the prior year’s balance. Of the ending fund balance, $105,889 is nonspendable fund balance, which represents the portion of fund balance that is either not in spendable form or are legally or contractually required to be maintained. Of the remaining $29,762,423 in spendable fund balance, $8,202,665 is restricted fund balance, $847,881 is assigned fund balance and $20,711,877 is unassigned fund balance. Restricted fund balance includes amounts that have externally imposed restrictions on their usage by creditors, such as debt covenants, grantors, and contributors, or by laws and regulations. Assigned fund balance includes amounts which are constrained by the City’s intent to be used for a specific purpose. These include designationsfor claimsliability and amounts assigned for equipment maintenance of the Civic Center, Community Center, Sports Complex, slopes, storm drains, and various parks.

The City identifies “major” governmental funds within the fund financial statements. Funds are reviewed annually to determine if any should be classified as a major fund. Specifically, funds that have 10% or more of total assets, liabilities, or fund balance of total governmental funds. The City may also classify as a major fund any fund or combination of funds that is considered essentially important to users.

The General Fund is the City’s primary operating governmental fund. The fund balance of the City’s general fund increased by $7,871,198 from the prior fiscal year’s balance. This is largely attributable to the spending of the second half of American Rescue Plan funds to partially pay for the Orange

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 14 County Sheriff costs of $3,732,689, as well as the receipt of the Community Benefit fees from the developer MGP Fund X Laguna Hills, LLC for the former Laguna Hills Mall site project of $1,613,533.

In addition, transfers out to other funds were significantly lower than in the prior year as the capital projects activity was not as substantial as it was in the prior year and the remaining debt service payments were lower, requiring less monies from the General Fund.

The ARPA Special Revenue Fund accounts for revenues received from the U.S. Department of Treasury from the local allocation for the American Rescue Plan Act to provide relief funds that have been negatively impacted from the Coronavirus pandemic. During the fiscal year, the City recognized $3,732,689 from ARPA revenues and transferred the funds to the General Fund to partially pay for the Orange County Sheriff costs. This was the remaining funding, therefore, no additional activity is to occur in future fiscal years.

The City’s Capital Projects Fund accounts for financial resources related to the acquisition and construction of the City’s capital projects. Revenues and transfers in from other funds reflect the financial resources used to fund the capital project expenditures during the current fiscal year; therefore, this fund typically reflects no fund balance at the end of the fiscal year. Total expenditures and transfersin for the current fiscal year were $911,752. Expenditures decreased from the prior year by roughly 73.2%, or $2,488,472 as there were not any significant capital projects during the current fiscal year. Significant street projects are undertaken every other fiscal year, with the Street Maintenance Project incurring expenditures in FY 2021‐2022.

The City’s debtservice fund reports current financial resources restricted for the payment of principal and interest for long‐term debt. As of the end of the current fiscal year, the debtservice fund reported $1,472,833 in fund balance. Of the total fund balance, $1,472,833 is restricted to meet the reserve requirement under the Trust Agreement of the Certificates of Participation for the 2010 Refinancing Project. Pursuant to the Agreement, a reserve fund was established by the trustee, The Bank of New York Mellon Trust Company, N.A., to further secure the timely payment of principal and interest. All interest or income received by the investment of the reserve fund is required to be retained in the reserve fund. Only to the extent the reserve requirement is satisfied, may amounts in the reserve fund be allocated toward lease payments. Interest income for the current fiscal year was $74,719.

Proprietary fund:

The proprietary fund provides the same type of information found in the government‐wide financial statements. The City’s proprietary fund consists of owning a piece of commercial real estate and leasing it to various entities. The total square footage of the Civic Center building is 51,945. The City is a tenant using approximately 21,033 square feet of the building.

The statement of revenues, expenses, and changes in fund net position reflect a net operating loss of $662,917, before the interest income of $129 and transfers in of $100,000. The net effect is a decrease in the ending net position of $562,788, which is largely attributable to depreciation. Before accounting for $585,980 in depreciation expense, the net operating activity would result in a net operating income of $23,192 from the City’s other leasing related activities. Moreover, the enterprise fund does not charge the City rent and common area maintenance (CAM). The estimated annual rent for the space occupied by City Hall would be approximately $549,965, not including CAM.

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 15 General Fund Budgetary Highlights
At fiscal year‐end, total General Fund revenues came in at $27,376,101, which was roughly 18.5%, or $4,270,716, above the amended budget for the year. This substantial increase was a result of the economy continuing to bounce back after being impacted by the COVID‐19 pandemic in the prior years.

Higher than anticipated property taxes, sales taxes, transient occupancy taxes, and franchise fees materialized in Fiscal Year 2022‐23. Also, community development revenues came in higher than the prior year, as there were Community Benefit fees collected as a result of the developer agreement with MGP, which was not budgeted.

Revenuesfrom taxes, the City’slargest General Fund revenue source, came in over budget by $1,926,885, or 9.4%, primarily due to sales taxes coming in higher than anticipated. The City’s second largest General Fund revenue source were charges for services, which came in higher than budgeted by $1,552,019, due to the $1.6 million received in Community Benefit fees. Additionally, licenses and permits, the City’s third largest General Fund revenue source, came in higher than budgeted by $256,769, due to increased demand for building permits.

Given the indication that COVID‐19 pandemic was going to have a significant negative effect on General Fund revenues for multiple years, a concerted effort was made to lower General Fund expenditures to offset a portion of the negative impact. General Fund expenditures totaled $22,730,403 at fiscal year‐ end, below budget by $2,056,937, or 8.3%. The largest budgetary savings by department was from Public Safety, which came under budget by $605,263. This was mainly due to a credit received on the final Sheriff’s invoice, in which overtime and vacancy credits are trued up for the fiscal year.

The net change in fund balance at fiscal year‐end in the General Fund was $7,871,198, which exceeded budget by $8,203,473. The main reason for this increase, as noted above, is better than expected taxes revenues, charges for services, and investment income, along with the second (and final) transfer of American Rescue Plan funds into the General Fund.

Capital Assets and Debt Administration
Capital Assets
The City’s investment in capital assets for its governmental and business‐type activities as of June 30, 2023 amounted to $82,639,012, net of accumulated depreciation. This investment includes land, land improvements, easements, right‐of‐ways, building, building improvements, equipment, machinery, construction in progress, and infrastructure. In accordance with the requirement of GASB 34, the value of the City’s infrastructure assets are included in this report, which include streets, sidewalks, curbs, gutters, playground equipment, and similar assets that are considered public property. Equipment and machinery includes vehicles, furniture, computer hardware and software.

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 16 A schedule showing the changes in the City’s capital assets are shown in Table 3 below.

Table 3
City of Laguna Hills Capital Assets (Net of accumulated depreciation) (in thousands)
Governmental Business‐type
Activities Activities Totals 2022 2023 2022 2023 2022 2023

Land $ 17,955 $ 17,955 $ 2,855 $ 2,855 $ 20,810 $ 20,810 Land improvements 1,509 1,280 ‐ ‐ 1,509 1,280 Rights of ways/Easements 2,854 2,854 ‐ ‐ 2,854 2,854 Building & improvements 1,092 1,113 2,701 2,133 3,793 3,246 Equipment and machinery 261 395 ‐ ‐ 261 395 Construction in progress ‐ 15 ‐ ‐ ‐ 15 Infrastructure 55,798 54,039 ‐ ‐ 55,798 54,039 Total capital assets
net of accumulated
depreciation $ 79,469 $ 77,651 $ 5,556 $ 4,988 $ 85,025 $ 82,639 Additional information on the City’s capital assets can be found in Note 5 on page 43 of this report.

Long‐term Debt
On January 26, 2010, to take advantage of favorable interest rates, the City issued $17,190,000 of Certificates of Participation (COPs). Proceeds from the sale were placed in an irrevocable trust used to service the future debt requirements of the 2001 and 2003 Certificates of Participation, which were issued to finance a portion of the costs to develop certain property, including the Civic Center Renovation Project and Community Center. As a result, the balance of the 2001 and 2003 COPs are considered to be defeased and the liability for those bonds has been removed. At fiscal year‐end June 30, 2023, the remaining principal balance was $730,000. The 2010 COPs maintain a “AA+” rating from Standard & Poor’s. Additional information on the City’s long‐term debt can be found in Note 6 on pages 44 to 46 of this report.

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 17 Budget and Economic Factors
The City’s most recent adopted biennial budget for fiscal years 2023/24 ‐ 2024/25 demonstratesthe City’s intent to effectively manage costs while simultaneously positioning the City for future growth. For Fiscal Year 2023/24, General Fund operating expenditures are projected at $26,579,106, while General Fund revenues are estimated at $26,952,038.

The major goals and issues that dominated the budget process for this 2024 – 2025 biennial period are discussed in the transmittal letter, along with measures adopted to address prevailing issues facing the City.

A copy of the 2024‐2025 Biennial Budget is available on the City’s website: www.ci.laguna‐hills.ca.us.

Requests for Information

This financial report is designed to provide a general overview of the City of Laguna Hills’ finances to all interested parties. Any questions regarding this report or requests for additional information should be addressed to the City’s Finance Department, at 24035 El Toro Road, Laguna Hills, California, 92653.

* * * * * *

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023)

Basic Financial Statements

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Notes to Basic Financial Statements 18
City of Laguna Hills, California
Statement of Net Position
June 30, 2023
Governmental Business‐type
Activities Activities Total
Assets:

Cash and investments $ 27,430,780 $ 205,247 $ 27,636,027 Taxes receivable 2,099,845 ‐ 2,099,845 Accounts receivable 45,066 26,842 71,908 Interest receivable 53,735 ‐ 53,735 Lease receivable 706,504 1,212,734 1,919,238 Prepaid items 105,889 ‐ 105,889 Due from other governments 912,532 ‐ 912,532 Restricted cash and investments 1,467,163 ‐ 1,467,163 Capital assets, not depreciated 20,824,536 2,855,425 23,679,961 Capital assets, net of accumulated
depreciation 56,826,053 2,132,998 58,959,051 Total assets 110,472,103 6,433,246 116,905,349 Deferred Outflows of Resources:

Deferred loss on refunding 45,595 ‐ 45,595 Deferred amounts from pension plans 3,018,357 ‐ 3,018,357 Total deferred outflows of resources 3,063,952 ‐ 3,063,952 Liabilities:

Accounts payable 697,074 ‐ 697,074 Accrued liabilities 161,053 22,541 183,594 Interest payable 12,742 ‐ 12,742 Due to other governments 696,242 ‐ 696,242 Deposits payable 721,225 46,951 768,176 Unearned revenue ‐ 6,445 6,445 Noncurrent Liabilities:

Due within one year 678,937 ‐ 678,937 Due in more than one year
Other long‐term liabilities 794,859 ‐ 794,859 Net pension liability 5,599,726 ‐ 5,599,726 Total liabilities 9,361,858 75,937 9,437,795 Deferred Inflows of Resources:

Deferred amounts from pension plans 593,668 ‐ 593,668 Deferred amount from leases 677,608 1,151,714 1,829,322 Total deferred inflows of resources 1,271,276 1,151,714 2,422,990 Net Position:

Net investment in capital assets 76,838,788 4,988,423 81,827,211 Restricted for:

Capital projects 2,053,640 ‐ 2,053,640 Public works 3,649,204 ‐ 3,649,204 Community services 907,271 ‐ 907,271 Police services 88,259 ‐ 88,259 Community development ‐ 31,458 31,458 Debt service 1,472,833 ‐ 1,472,833 Unrestricted 17,861,468 217,172 18,078,640 Total net position 102,902,921 $ $ 5,205,595 $ 108,108,516

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Notes to Basic Financial Statements 19
City of Laguna Hills, California
Statement of Activities
Year Ended June 30, 2023
Operating Capital Total
Charges for Contributions Contributions Program
Expenses Services and Grants and Grants Revenues
Governmental Activities:

General government $ 4,577,936 $ 36,804 $ ‐ $ ‐ $ 36,804 Public works 7,674,208 600,449 422,486 2,507,586 3,530,521 Community development 1,405,880 2,890,596 84,230 ‐ 2,974,826 Community services 2,572,809 2,657,311 56,978 ‐ 2,714,289 Public safety 10,106,055 224,731 4,037,986 ‐ 4,262,717 Interest expenses (12,748) ‐ ‐ ‐ ‐
Total governmental activities 26,324,140 6,409,891 4,601,680 2,507,586 13,519,157 Business‐Type Activity:

Property leasing 1,417,830 754,913 ‐ ‐ 754,913 Total business‐type activities 1,417,830 754,913 ‐ ‐ 754,913 Total primary government 27,741,970 $ $ 7,164,804 $ 4,601,680 $ 2,507,586 $ 14,274,070 General Revenues:

Taxes:

Property taxes
Franchise tax
Transient occupancy tax
Intergovernmental, unrestricted:

Sales and use tax
Motor vehicle in lieu
State subvention
Investment earnings
Miscellaneous revenue
Total general revenues
Transfers In (Out)
Total general revenues and transfers
Change in Net Position
Net Position at Beginning of Year
Net Position at End of Year
Program Revenues
Functions/Programs

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Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Notes to Basic Financial Statements   20
City of Laguna Hills, California
Statement of Activities
Year Ended June 30, 2023
Governmental Business‐type
Activities Activities Total
$       ‐ (4,541,132) $                        $      (4,541,132) ‐ (4,143,687)                                    (4,143,687) ‐ 1,568,946                                     1,568,946 ‐ 141,480                                         141,480 ‐ (5,843,338)                                    (5,843,338) ‐ 12,748                                           12,748 ‐ (12,804,983)                                  (12,804,983) ‐            (662,917)            (662,917)
‐            (662,917)            (662,917)
(12,804,983)            (662,917)       (13,467,900)
‐ 13,069,248                                   13,069,248 ‐ 1,326,571                                     1,326,571 1,122,643                           ‐          1,122,643 ‐ 6,930,366                                     6,930,366 ‐ 32,177                                           32,177 ‐ 80,839                                           80,839 636,875                      129              637,004
‐ 111,233                                         111,233 23,309,952                      129        23,310,081
(100,000) 100,000                           ‐
23,209,952              100,129        23,310,081
10,404,969            (562,788)          9,842,181
92,497,952          5,768,383        98,266,335 $  102,902,921 $       5,205,595 $  108,108,516 Net (Expense) Revenue and Changes in Net Position

4.6.a
Packet Pg. 94
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Notes to Basic Financial Statements 21
City of Laguna Hills, California
Balance Sheet ‐ Governmental Funds
June 30, 2023
ARPA Other
Special Revenue Capital Governmental
General Fund Projects Funds Totals
Assets:

Cash and investments $ 21,111,445 $ ‐ $ ‐ $ 6,319,335 $ 27,430,780 Receivables:

Taxes 2,099,845 ‐ ‐ ‐ 2,099,845 Accounts 43,837 ‐ ‐ 1,229 45,066 Interest 48,065 ‐ ‐ 5,670 53,735 Leases 706,504 ‐ ‐ ‐ 706,504
Prepaid items 105,889 ‐ ‐ ‐ 105,889 Due from other funds 69,583 ‐ ‐ ‐ 69,583 Due from other governments 252,300 ‐ ‐ 660,232 912,532 Restricted Assets:

Cash and investments ‐ ‐ ‐ 1,467,163 1,467,163 Total assets $ 24,437,468 $ ‐ $ ‐ $ 8,453,629 $ 32,891,097 Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable $ 547,528 $ ‐ $ ‐ $ 149,546 $ 697,074 Accrued liabilities 161,053 ‐ ‐ ‐ 161,053 Deposits 721,225 ‐ ‐ ‐ 721,225
Due to other funds ‐ ‐ ‐ 69,583 69,583 Due to other governments 664,407 ‐ ‐ 31,835 696,242 Total liabilities 2,094,213 ‐ ‐ 250,964 2,345,177 Deferred Inflows of Resources:

Lease related 677,608 ‐ ‐ ‐ 677,608 Total deferred inflows of resources 677,608 ‐ ‐ ‐ 677,608 Fund Balances:

Nonspendable     105,889 ‐      ‐      ‐         105,889 Restricted       ‐ ‐      ‐           8,202,665      8,202,665 Assigned     847,881 ‐      ‐      ‐         847,881
Unassigned     20,711,877 ‐      ‐      ‐         20,711,877 Total fund balances     21,665,647 ‐      ‐           8,202,665    29,868,312 Total liabilities, deferred inflows of
resources and fund balances $     24,437,468 $        ‐ $        ‐ $       8,453,629 $     32,891,097

4.6.a
Packet Pg. 95
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Notes to Basic Financial Statements 22
City of Laguna Hills, California
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Governmental Funds
June 30, 2023
Fund balances of governmental funds 29,868,312 $
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets net of depreciation have not been included as financial resources in governmental fund activity
Capital assets 166,801,466
Accumulated depreciation (89,150,877)
Long‐term liabilities are not available to pay for current‐period expenditures and, therefore, are not reported in the governmental funds. Long‐term liabilities consist of the following:

Certificates of participation (730,000)
Bond premium (127,396)
Direct borrowings (252,428)
Compensated absences (252,170)
Claims and judgments payable (111,802)
Deferred outflows of resources (loss on refunding of bonds) that have not been included in the governmental fund activity. 45,595 Accrued interest payable for the current portion of interest due on the Certificates of Participation has not been reported in the governmental funds. (12,742)
Pension related liabilities applicable to the City's governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the Statement of Net Position as the changes in these amounts affects only the government‐wide statements for governmental activities:

Deferred outflows of resources 3,018,357
Deferred inflows of resources (593,668)
Net pension liability (5, 599,726)
Net Position of Governmental Activities 102,902,921 $

4.6.a
Packet Pg. 96
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Notes to Basic Financial Statements 23
City of Laguna Hills, California
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2023
ARPA Other
Special Revenue Capital Governmental
General Fund Projects Funds Totals
Revenues:

Taxes $ ‐ 22,448,828 $ ‐ $ $ 180,000 $ 22,628,828 Licenses and permits 1,381,282 ‐ ‐ 71,785 1,453,067 Intergovernmental revenues 322,692 ‐ 3,732,689 3,144,521 7,199,902 Charges for services 2,482,814 ‐ ‐ 2,350,000 4,832,814 Fines and forfeitures 224,731 ‐ ‐ ‐ 224,731 Investment income ‐ 515,754 ‐ 229,451 745,205 Other revenues ‐ ‐ ‐ 4,055 4,055 Total revenues 27,376,101 ‐ 3,732,689 5,979,812 37,088,602 Expenditures:

General government ‐ 4,341,841 ‐ ‐ 4,341,841 Public works 4,220,252 ‐ 155,813 802,787 5,178,852 Community development 1,405,880 ‐ ‐ ‐ 1,405,880 Community services 2,303,939 ‐ ‐ 29,124 2,333,063 Public safety 10,096,445 ‐ ‐ ‐ 10,096,445 Capital outlay 269,744 ‐ 755,939 110,817 1,136,500 Debt service:

Interest and fiscal charges ‐ ‐ ‐ 46,423 46,423 Principal retirement 92,302 ‐ ‐ 345,000 437,302 Total expenditures 22,730,403 ‐ 911,752 1,334,151 24,976,306 Excess (Deficiency) of Revenues
over (Under) Expenditures 4,645,698 3,732,689 (911,752) 4,645,661 12,112,296 Other Financing Sources (Uses):

Transfers in 4,392,118 ‐ 911,752 4,866 5,308,736 Transfers out (1,166,618) ‐ (3,732,689) (509,429) (5,408,736) Total other financing sources (uses) 3,225,500 (3,732,689) 911,752 (504,563) (100,000) Net Changes in Fund Balances 7,871,198 ‐ ‐ 4,141,098 12,012,296 Fund Balances, Beginning of Year 13,794,449 ‐ ‐ 4,061,567 17,856,016 Fund Balances, End of Year 21,665,647 $ ‐ $ ‐ $ $ 8,202,665 $ 29,868,312

4.6.a
Packet Pg. 97
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Notes to Basic Financial Statements 24
City of Laguna Hills, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2023
Net change in fund balances ‐ total governmental funds 12,012,296 $ Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense.

This activity is reconciled as follows:

Capital outlay, net of disposals 1,741
Depreciation and amortization expense, net of disposal (1,820,200) Long‐term debt proceeds provide current financial resources to governmental funds, but issuing debt increases long‐term liabilities in the Statement of Net Position. Premiums associated with the issuance of long‐term debt are reported as revenues in the governmental funds, but in the Statement of Net Position, the premiums are deferred and amortized throughout the period during which the related debt is outstanding. Repayment of principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long‐term liabilities.

Principal payments 345,000
Amortization of bond premium 80,464
Direct borrowing principal payments 92,302
Deferred losses on refunding of long‐term debt in the Statement of Net Position are deferred and amortized throughout the period during which the related debt is outstanding. (28,801)
Some expenses reported in the Statement of Activities do not require the use of current financial resources, and therefore, are not reported as expenditures in the governmental funds.

Change in compensated absences 45,511
Change in claims and judgments payable 192,521
Change in accrued interest for Certificates of Participation 7,508 Net difference between pension expense recorded on the government wide statement of activities and contributions paid. (263,880) Revenues in the Statement of Activities that do not meet the "availability" criteria for revenue recognition are reported as deferred inflows of resources, unavailable revenues, in the governmental funds. This is the net change in deferred inflows of resources, unavailable revenues, from the prior year. (259,493) Change in net position of governmental activities 10,404,969 $

4.6.a
Packet Pg. 98
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Notes to Basic Financial Statements 25
City of Laguna Hills, California
Statement of Net Position – Proprietary Fund
June 30, 2023
Enterprise ‐
Property Leasing
Assets:

Current Assets:

Cash and investments 205,247 $
Receivables:

Accounts 26,842
Leases 341,941
Total current assets 574,030
Noncurrent Assets:

Receivables:

Leases 870,793
Capital assets not depreciated 2,855,425
Capital assets, net of accumulated depreciation 2,132,998 Total noncurrent assets 5,859,216
Total assets 6,433,246
Liabilities:

Current Liabilities:

Accrued liabilities                22,541
Deposits payable                46,951
Unearned revenue                  6,445
Total current liabilities 75,937
Deferred Inflows of Resources:

Leases 1,151,714
Net Position:

Net investment in capital assets 4,988,423
Unrestricted 217,172
Total net position 5,205,595 $

4.6.a
Packet Pg. 99
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Notes to Basic Financial Statements 26
City of Laguna Hills, California
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Fund Year Ended June 30, 2023
Enterprise ‐
Property Leasing
Operating Revenues:

Rental fees $ 713,350
Common area maintenance revenues 41,703
Other current service fees (140)
Total operating revenues 754,913
Operating Expenses:

Direct operating expenses 804,321
Administrative and professional fees 27,529
Depreciation expense 585,980
Total operating expenses 1,417,830
Operating income (loss) (662,917)
Nonoperating Revenues:

Transfers in 100,000
Interest income 129
Total nonoperating revenues 100,129
Change in Net Position (562,788)
Net Position at Beginning of Year 5,768,383
Net Position at End of Year 5,205,595 $

4.6.a
Packet Pg. 100 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Notes to Basic Financial Statements 27
City of Laguna Hills, California
Statement of Cash Flows – Proprietary Fund
Year Ended June 30, 2023
Enterprise ‐
Property Leasing
Operating Activities:

Receipts from tenants $ 357,701
Payments to suppliers for goods and services (850,688)
Net Cash Used for Operating Activities (492,987)
Capital and Related Financing Activities:

Acquisition of capital assets    (18,193)
Cash received on lease receivables   446,907
Cash received for interest on lease receivables     48,050 Net Cash Provided by Capital and Related Financing Activities   476,764 Investing Activities:

Interest Received   129
Net Cash Provided by Investing Activities   129
Net Decrease in Cash and Cash Equivalents    (16,094)
Cash and Cash Equivalents at Beginning of Year   221,341 Cash and Cash Equivalents at End of Year $      205,247 Reconciliation of cash and cash equivalents:

Operating loss $ (662,917)
Adjustments to reconcile operating loss to net cash
Provided by Operating Activities:

Depreciation expense   585,980
Recognition of lease income   (426,251)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable     28,361
Increase (decrease) in accrued liabilities    (21,538)
Increase (decrease) in deposits payable    2,700
Increase (decrease) in unearned revenue   678
Total adjustments   169,930
Net Cash Provided by (used for) Operating Activities $         (492,987) Schedule of Non‐Cash Investing, Capital and Financing Activities Lease receivable and deferred inflows recognized on new lessor lease transaction 69,143 $ Lease revenue recognized (66,287) $

4.6.a
Packet Pg. 101 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 28 City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
Note 1 ‐ Reporting Entity and Summary of Significant Accounting Policies a) Summary of Significant Accounting Policies
The basic financial statements of the City have been prepared in accordance with generally accepted accounting principles as applicable to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles.

The Financial Reporting Entity
The City of Laguna Hills (the City) was incorporated on December 20, 1991 under the General Laws of the State of California. The City operates under a Council‐Manager form of government and provides the following services: public safety, highways and streets, parks, solid waste, public improvements, planning and zoning, building and safety, community services, and general administrative services.

This report includes all fund types of the City (the primary government) and the Laguna Hills Public Improvement Corporation (the Corporation). The Corporation meets the definition of a component unit and is presented on a blended basis, as if it is a part of the primary government. Although it is a legally separate entity, the governing board of the Corporation is comprised of the same membership as the City Council. The City may impose its will on the Corporation, including the ability to appoint, hire, reassign, or dismiss management. There is also a financial benefit/burden relationship between the City and the Corporation.

The Corporation was established by the City Council on September 2, 1998. The Board of Directors of the Corporation is composed of the five members in connection with the acquisition, construction and improvement of public capital improvements. The activity of the Corporation is reported in the Debt Service Fund. Separate financial statements are not prepared for this blended component unit. b) Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
 Government‐wide financial statements
 Fund financial statements
 Notes to the basic financial statements
Government‐wide Financial Statements
Government‐wide financial statements display information about the reporting government as a whole. These statements include separate columns for the governmental and business‐type activities of the primary government. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City. Also, interfund services provided and used have not been eliminated.

4.6.a
Packet Pg. 102 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
29 Government‐wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long‐term) economic resources and obligations of the reporting government are reported in the government‐wide financial statements. The basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange‐like transactions are recognized when the exchange takes place.

Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place.

Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government‐mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.

The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. The types of transactions reported as program revenues for the City are reported in three categories: charges for services, operating grants and contributions, and capital grants and contributions.

Charges for services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions include revenues restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Amounts paid to acquire capital assets are capitalized as assets in the government‐wide financial statements, rather than reported as expenditures. Proceeds of long‐term debt are recorded as a liability in the government‐ wide financial statements, rather than as another financing source. Amounts paid to reduce long‐term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as expenditures.

Reclassifications and Eliminations
Interfund balances must generally be eliminated in the government‐wide statements, except for net residual amounts due between governmental and business‐type activities. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported only once ‐ in the function in which they are allocated.

4.6.a
Packet Pg. 103 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
30 Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self‐balancing accounts that comprise its assets, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government’s governmental and proprietary funds are presented after the government‐wide financial statements. These statements display information about major funds individually and non‐major funds in the aggregate for governmental and enterprise funds.

Governmental Funds
In the fund financial statements, governmental funds are presented using the modified‐accrual basis of accounting. Their revenues are recognized when they become measurable and available. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. For this purpose, the City considers its general revenue (except property tax), to be available if they are collected within 90 days of the end of the fiscal year. The City uses a 60‐day and 180‐day availability period for property tax and special revenue grants and contributions, respectively.

Imposed non‐exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government‐mandated and voluntary non‐ exchange transactions are recognized as revenues when all applicable eligibility requirements have been met.

Sales taxes, property taxes, franchise fees, gas taxes, motor vehicle in lieu fees, transient occupancy taxes, grants and investment income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available where cash is received by the government.

In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

4.6.a
Packet Pg. 104 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
31 Non‐current portions of long‐term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non‐current liabilities. Since they do not affect fund balance, such long‐term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long‐term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long‐term indebtedness are reported as fund expenditures.

When expenditures are incurred, the City’s applies the most restrictive funds first; and then the City would use the appropriate funds in the following order: committed, assigned, and lastly unassigned amounts.

Proprietary Fund
The City’s enterprise fund is a proprietary fund. In the fund financial statements, the proprietary fund is presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, the proprietary fund is presented using the economic resources measurement focus. This means that all assets and liabilities (whether current or non‐current) associated with their activity are included on their statement of net position. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position. The City has no internal service funds.

Proprietary fund operating revenues, such as rental fees, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non‐operating revenues, such as investment income, results from non‐exchange transactions or ancillary activities. Proprietary fund operating expenses result from providing the services in connection with the proprietary fund’s principal ongoing operations.

Amounts paid to acquire capital assets are capitalized as assets in the enterprise fund financial statements, rather than reported as expenditures. Proceeds of long‐term debt are recorded as a liability in the enterprise fund financial statements, rather than as an other financing source. Amounts paid to reduce long‐term indebtedness of the enterprise fund are reported as a reduction of the related liability, rather than as expenditures.

When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources.

4.6.a
Packet Pg. 105 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
32 c) Major Funds
The City reports the following major governmental funds:

General Fund
The General Fund is the general operating fund of the City. It is used to account for resources traditionally associated with government, which are not required legally or by sound financial management to be accounted for in another fund.

ARPA Special Revenue Fund
The ARPA Special Revenue Fund accounts for revenue received from U.S Department of Treasury from the local allocation for the American Rescue Plan Act to provide relief funds that have been negatively impacted from the coronavirus pandemic.

Capital Projects Fund
The Capital Projects Fund is used to account for the financial resources to be used for the acquisition and construction of the City’s capital projects.

The City reports the following major proprietary fund:

Property Leasing
The City Hall Fund is used to account for activity pertaining to the leasing of certain areas in the Laguna Hills Civic Center, which has been the City Hall site and seat of government since June 28, 2004.

Additionally, the City reports the following fund types:

Special Revenue Funds
The Special Revenue Funds are used to account for certain revenue sources set aside for specific purposes, to avoid including restricted revenues within the general fund and to provide separate information on the sources and applications of these restricted sources.

Debt Service Fund
The Debt Service Fund is used to pay the City’s debt service on its Certificate of Participation (COP) issue. d) New Accounting Pronouncements
Current Year Standards
GASB Statement No. 91 – In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The objective of this Statement is to provide a single method of reporting conduit debt obligations by issues and eliminate diversity in practice. The Statement is effective for reporting periods beginning after December 15, 2021. The City has determined that there was no material impact on the City’s financial statements.

4.6.a
Packet Pg. 106 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
33 GASB Statement No. 94 – In March 2020, GASB issued Statement No. 94, Public‐Private and Public‐Public Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial reporting by addressing issues related to public‐private and public‐public partnership arrangements (PPPs). The Statement is effective for reporting periods beginning after June 15, 2022. The City has determined that there was no material impact on the City’s financial statements.

GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription‐Based Information Technology Arrangements. The objective of this Statement is to provide guidance on the accounting and financial reporting for subscription‐based information technology arrangements (SBITAs) for government end users (governments). The Statement is effective for reporting periods beginning after June 15, 2022. The City has determined that there was no material impact on the City’s financial statements.

Pending Accounting Standards
GASB has issued the following statements that may impact the City’s financial reporting requirements in the future. The City is currently evaluating the potential impact of these statements:

GASB Statement No. 100 – Accounting Changes and Error Corrections.

GASB Statement No. 101 – Compensated Absences.
e) Cash and Investments
Investments are reported in the accompanying basic financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments that are not traded on a market, such as investments in external pools, are valued based on the stated fair value represented by the external pool.

Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.

The City pools cash and investments of all funds, except for amounts held by fiscal agents. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.
f) Statement of Cash Flows
The enterprise proprietary fund participates in the City‐wide cash and investments pool, which provides immediate access to invested funds. Accordingly, all cash and investments are considered to be cash and cash equivalents for purposes of the Statement of Cash Flows. g) Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the Government‐Wide and Fund Financial Statements utilizing the consumption method.

4.6.a
Packet Pg. 107 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
34 h) Property Taxes
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available (within 60 days of the fiscal year end). The County of Orange collects property taxes for the City. Tax liens attach annually as of 12:01 am on the first day of January proceeding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one‐half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on January 1 each year, and are delinquent, if unpaid, on August 31. i) Capital Assets
Capital assets are capital outlay for assets of a permanent nature, valued at $20,000 or more and the usage of which is expected to be more than five years. Right to use lease assets in excess of $20,000 are capitalized. Right to use subscription assets in excess of $20,000 are capitalized. Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Contributed capital assets are valued at acquisition value at the date of the contribution.

Capital assets include public domain (infrastructure) general assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains.

Capital assets used in operations are depreciated over their estimated useful lives using the straight‐line method in the government‐wide financial statements and in the fund financial statements of the enterprise fund.

Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective statements of net position. The range of lives used for depreciation purposes for each capital asset class, are as follows:

Years
Building and improvements 20 years
Machinery and equipment 5 ‐ 10 years
Infrastructure 5 ‐ 60 years
Land improvements 20 years
Asset
j) Lease Receivable
Lease receivables are recorded by the City as the present value of future lease payments expected to be received from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts.

Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received are discounted based on the interest rate the City charges the lessee.

4.6.a
Packet Pg. 108 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
35 k) Claims and Judgments Payable
As of July 1, 2003, the City became a member of the Exclusive Risk Management Authority of California. The annual premium includes estimates for the amounts paid for reported claims and incurred but not reported claims based upon past experience, modified for current trends and information. Premiums are recorded as expenditures when they become payable from expendable available resources. When it is probable that a claims liability has been incurred and the amount of the loss can be reasonably estimated through historical trends and calculation of incurred but not reported claims (IBNR), the City accrues the estimated liability for the expected claims and judgments. These amounts are recorded in the government‐wide financial statements. A liability is reported in the governmental funds only if there is an amount due and payable at June 30. l) Deferred Inflows and Outflows of Resources
In addition to assets, the government‐wide statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense) until that time. The City has the following items that qualify for reporting in this category:
 Deferred loss on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt, which is 15 years.
 Deferred outflows related to pensions equal to employer contributions made after the measurement date of the net pension liability.
 Deferred outflows related to pensions for differences between expected and actual experiences, changes in assumptions, and changes in proportion and differences between employer contributions and the proportionate share of contributions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions through the plans.
 Deferred outflows related to pensions resulting from the difference in projected and actual earnings on investments of the pension plan fiduciary net position. These amounts are amortized over five years.

In addition to liabilities, the government‐wide statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
 Deferred inflows related to pensions for differences between expected and actual experiences and differences between employer contributions and the proportionate share of contributions.

These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions through the plans.  Deferred inflows related to leases where the City is the lessor and is reported in the governmental fund balance sheet and statement of net position. The deferred inflows of resources related to leases are recognized as an inflow of resources (revenue) on the straight‐line basis over the term of the lease.

4.6.a
Packet Pg. 109 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
36 m) Compensated Absences
Vacation time is provided to all full‐time and extended part‐time employees. Upon separation or retirement from City service, all employees shall be compensated at their prevailing pay rate for their accrued vacation. No employee shall be allowed to carry over more than 320 hours of vacation time from one fiscal year to the next.

At the start of the fiscal year, if an employee has more than 320 hours accrued, the City will automatically cash out any hours in excess of 320.

The City provides an ICMA Vantage Care Retirement Health Savings (RHS) Plan, a defined contribution plan, to its full‐time employees that have reached ten (10) years of service with the City. This employer‐ sponsored retiree health benefit allows employees to accumulate assets to pay for medical expenses on a tax‐free basis either upon separation of service from the City or age 50 dependent upon when contributions to the plan were made. In compliance with the Patient Protection and Affordable Care Act, contributions to the plan made after December 31, 2013, are available to plan participants for medical expenses only upon separation of employment. In the event of a participant’s death, the participant’s surviving spouse and/or eligible dependent(s) are immediately eligible to maintain the account and utilize it to fund eligible medical expenses. If a participant’s balance is not fully depleted upon the death of the eligible spouse, the account balance may continue to be utilized to pay medical expenses of eligible dependents. An eligible dependent is (a) the participant’s lawful spouse, (b) the participant’s child under the age of 27, as defined by IRC Section 152(f)(1) and Internal Revenue Service Notice 2010‐38, or (c) any other individual who is a person described in IRC Section 152(a), as classified by Internal Revenue Service Notice 2004‐79. The assets of the individual plans are not subject to claims of the City’s creditors. The start‐up contribution for employees will be based on their accumulated sick leave hours in excess of 160 hours at their prevailing pay rate, upon the completion of ten (10) years of service to the City. Thereafter, annual contributions will be made to each employee’s account for their unused sick leave hours in excess of 160 hours on June 30th of each fiscal year at the employees’ prevailing pay rate. Upon separation from employment, the City will make a final contribution on behalf of the employee equivalent to all the unused sick leave balance of the employee at the employee’s prevailing pay rate at the time of separation. The City also contributes $5,000 on behalf of each participant, upon completion of ten years of service and annually thereafter on the participant’s employment anniversary date as long as the individual is an employee with the City. The $5,000 City contributions cease after termination or retirement of the employee. In the fiscal year ended June 30, 2023, the City contributed $30,000 to the RHS Plan.

All vacation and sick leave pay is accrued when incurred in the government‐wide financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
n) Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

4.6.a
Packet Pg. 110 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
37 o) Use of Estimates
The preparation of the basic financial statements in accordance with accounting principles generally accepted in the United States of America, as prescribed by the GASB, requires management to make assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates.

Note 2 ‐ Cash and Investments
The City maintains a cash and investment pool that is available for use by all funds. Cash and investments at June 30, 2023, are reported in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments 27,636,027 $
Restricted cash and investments 1,467,163
Total cash and investments 29,103,190 $
Cash and investments at June 30, 2023, consisted of the following:

Cash on hand $ 2,500
Pooled deposits:

Demand deposits 459,127 $
Total pooled deposits 459,127
Pooled investments:

Local Agency Investment Fund 6,142,965
CalTRUST Money Market Mutual Fund 21,031,435
Total pooled investments and deposits 27,174,400
Restricted cash and investments:

BNY Mellon 1,467,163
Total restricted cash and investments 1,467,163
Total cash and investments 29,103,190 $
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures, including investment policy considerations. Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on quarterly cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

4.6.a
Packet Pg. 111 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
38 Authorized Investments
Under the provision of the City’s investment policy, and in accordance with Section 53601 of the California Government Code, the City may invest in the following types of investments.

Maximum
Percent of
Diversification By Investments Portfolio
U.S. Treasury Obligations (bills, notes and bonds) 50%
Certificates of Deposit (CDs) Commercial Banks 50%
Certificates of Deposit (CDs) Savings and Loan 25%
State Treasurer’s Local Agency Investment Fund 75%
CalTRUST 75%
Overnight investment accounts managed by 50%
City’s primary bank
Commercial Paper 10%
Banker’s Acceptances 15%
Money Market Mutual Funds 15%
Maximum
Percent of
Diversification By Institution/Issuer Portfolio
Certificates of Deposit (CDs) Commercial Banks 25%
Certificates of Deposit (CDs) Savings and Loan $250,000 maximum
The maximum maturity for all investments listed above is 1 year with the exception of commercial paper and Prime Banker’s Acceptances for which the maximum maturity is 180 days and 270 days, respectively.

Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code.

Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

4.6.a
Packet Pg. 112 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
39 The City has a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from interest rates. The City limits the investment maturities for operating funds to be scheduled to coincide with projected cash flow needs, taking into account large routine expenditures as well as considering sizable blocks of anticipated revenue. The City has elected the specific identification method to present the investment maturities as follows.
6 Months
or less Fair Value
Local Agency Investment Fund 6,142,965 $ $ 6,142,965 CalTRUST Money Market Mutual Fund 21,031,435 21,031,435 Investment with Fiscal Agent:

BNY Mellon 1,467,163 1,467,163
Total 28,641,563 $ $ 28,641,563
Investment Type
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s minimum legal rating for Money Market Mutual Funds is AAA. There is no minimum legal rating applicable for investments in the Local Agency Investment Fund and the City has no minimum legal rating for investments in CalTRUST. As of June 30, 2023, the City’s investment in the Local Agency Investment Fund has not been rated by a nationally recognized statistical rating organization.

Concentration of Credit Risk
Concentration credit risk is the heightened risk of potential loss when investments are concentrated in one issuer. As of June 30, 2023, other than the State Treasurer’s Local Agency Investment Fund and the CalTRUST Money Market Mutual Fund, the City had no investments concentrated in one issuer which exceeded 5% of total investments.

Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.

4.6.a
Packet Pg. 113 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
40 The California Government Code requires California banks and savings and loan associations to secure a city's deposits by pledging government securities with a fair value of 110% of a city's deposits. California law also allows financial institutions to secure a city’s deposits by pledging first trust deed mortgage notes having a fair value of 150% of a city's total deposits. The collateral for deposits in federal and state‐chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking.

The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.

As of June 30, 2023, none of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.

For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement acquires the investment, and holds the investment on behalf of the reporting government.

Investment in State Treasurer’s Local Agency Investment Fund The City is a voluntary participant in the State Treasurer’s Local Agency Investment Fund that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro rata share of the fair value provided by State Treasurer’s Local Agency Investment Fund for the entire State Treasurer’s Local Agency Investment Fund portfolio (in relation to the amortized cost of that portfolio).

The balance available for withdrawal is based on the accounting records maintained by State Treasurer’s Local Agency Investment Fund, which are recorded on an amortized cost basis. The Local Agency Investment Fund is not registered with the Securities Exchange Commission and not rated.

Investment in CalTRUST Investment Pool:

CalTRUST is a Joint Powers Agency Authority created by local public agencies to provide a convenient method for local public agencies to voluntarily pool their assets for investment purposes. CalTRUST is governed by a Board of Trustees made up of experienced local agency treasurers and investment officers. The Board sets overall policies for the program and selects and supervises the activities of the investment manager and other agents. CalTRUST maintains and administers four pooled accounts within the program: Government Fund, Money Market, Short‐Term, and Medium‐Term. The Government Fund and Money Market accounts permit daily transactions, with same‐day liquidity (provided redemption requests are received by 1:00 p.m. Pacific time), with no limit on the amount of funds that may be invested. The Short‐Term account permits an unlimited number of transactions per month (with prior day notice), with no limit on the amount of funds that may be invested. The Medium‐Term account permits investments, withdrawals and transfers once per month, with five days advance notice. All CalTRUST accounts comply with the limits and restrictions placed on local agency investments by the California Government Code. CalTRUST imposes a $250,000 minimum investment; however, there is no maximum limit.

4.6.a
Packet Pg. 114 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
41 The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s percentage interest of the fair value provided by CalTRUST for the CalTRUST accounts (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by CalTRUST.

Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are quoted prices for similar assets in active markets, and Level 3 inputs are significant unobservable inputs.

Amounts invested in the Local Agency Investment Fund and CalTRUST Money Market Mutual Funds are not subject to fair value measurements. Deposits and withdrawals are made on the basis of $1 and not at fair value.

Note 3 ‐ Due From/To Other Funds
Interfund receivables and payables at June 30, 2023, were as follows.

Due From Due To
Other Funds Other Funds
Major Governmental:

General 69,583 $ ‐ $
Non‐major Governmental:

Measure M Special Revenue ‐ 69,583 Total 69,583 $ $ 69,583
Funds
Outstanding balances at the end of the fiscal year between funds are reported as “due to/from other funds”.

These balances are the result primarily from short‐term negative cash balances.

4.6.a
Packet Pg. 115 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
42 Note 4 ‐ Transfers In and Out
Transfers in and out for the fiscal year ended June 30, 2023, are as follows:

Transfers Transfers
Out In
Major Governmental: Major Governmental:

General 1,166,618 $ General 4,392,118 $
ARPA Special Revenue 3,732,689 Capital Projects 911,752 Total major governmental 4,899,307 Total major governmental 5,303,870 Non‐major Governmental: Non‐major Governmental:

Gas Tax Special Revenue 61,428 Debt Service 2,041 Measure M Special Revenue 199,980 Senior Mobility Program Special Revenue 2,825 Grants & Contributions Special Revenue 82,021
SLESF / COPS BRULTE Special Revenue 166,000 Total non‐major governmental 4,866 Total non‐major governmental 509,429 Proprietary:

Enterprise ‐ Property Leasing 100,000
Total proprietary 100,000
Total 5,408,736 $ Total 5,408,736 $
Paying Fund Receiving Fund
The General Fund transferred $911,752 to the Capital Projects Fund for the initial funding of capital improvement project (CIP) expenses. The Gas Tax and Measure M Special Revenue Funds contributed $61,428 and $199,980, respectively to the General Fund to reimburse the fund for eligible CIP costs.

Transfers from the ARPA Special Revenue Fund to the General Fund in the amount of $3,732,689 were to partially fund the law enforcement contract with American Rescue Plan funding. In addition, transfers from the SLESF/COPS BRULTE Special Revenue Fund in the amount of $166,000 to the General Fund were to cover partial law enforcement contract costs.

Transfers from the Grants & Contributions Special Revenue Fund in the amount of $82,021 were to close out the fund as of June 30, 2023.

Transfers from the General Fund were to: 1) provide the required 20% match for the Senior Mobility Program primarily funded by OCTA in the amount of $2,825; 2) provide funding of $2,041 for bond payment expenses in the Debt Service Fund; and 3) provide funding for the property leasing operations in the Enterprise Fund in the amount of $100,000.

4.6.a
Packet Pg. 116 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
43 Note 5 ‐ Capital Assets
Capital asset activity for the fiscal year ended June 30, 2023, was as follows:

Balance at Ending
July 1, 2022 Additions Deletions June 30, 2023
Governmental activities:

Land 17,955,354 $ ‐ $ ‐ $ $ 17,955,354 Rights of way / easements 2,854,182 ‐ ‐ 2,854,182 Construction in progress ‐ ‐ 15,000 15,000 Total cost of non‐depreciable assets 20,809,536 ‐ 15,000 20,824,536 Buildings and improvements 14,505,823 146,600 (75,055) 14,577,368 Machinery and equipment 2,754,219 276,529 (291,995) 2,738,753 Land improvements 26,417,256 ‐ (69,338) 26,347,918 Infrastructure 102,312,891 ‐ ‐ 102,312,891 Total cost of depreciable assets 145,990,189 423,129 (436,388) 145,976,930 Less accumulated depreciation for:

Buildings and improvements (13,413,965) (69,950) 19,057 (13,464,858) Machinery and equipment (2,493,375) (75,538) 225,227 (2,343,686) Land improvements (24,908,663) (162,709) 3,467 (25,067,905) Infrastructure (46,514,674) ‐ (1,759,754) (48,274,428) Total accumulated depreciation (87,330,677) (2,067,951) 247,751 (89,150,877) Net depreciable assets 58,659,512 (1,644,822) (188,637) 56,826,053 Total capital assets, net 79,469,048 $ $ (1,629,822) $ (188,637) $ 77,650,589 Business‐type activity:

Land $ ‐ 2,855,425 $ ‐ $ $ 2,855,425 Total cost of non‐depreciable assets 2,855,425 ‐ ‐ 2,855,425 Buildings and improvements 15,234,382 ‐ 18,193 15,252,575 Total cost of depreciable assets 15,234,382 ‐ 18,193 15,252,575 Less accumulated depreciation for:

Buildings and improvements (12,533,597) ‐ (585,980) (13,119,577) Total accumulated depreciation (12,533,597) ‐ (585,980) (13,119,577) Net depreciable assets 2,700,785 ‐ (567,787) 2,132,998 Total capital assets, net 5,556,210 $ $ ‐ (567,787) $ $ 4,988,423

4.6.a
Packet Pg. 117 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
44 Depreciation expense was charged in the following functions in the Statement of Activities:

Governmental Activities:

General government 21,610 $
Public works 1,796,985
Community services 239,746
Public safety 9,610
2,067,951
Business‐type Activity:

Property leasing 585,980
Total 2,653,931 $
Note 6 ‐ Long‐term Liabilities
Long‐term liability activity for the fiscal year ended June 30, 2023, was as follows:

Governmental Activities:

Balance at Balance at Amounts Due
July 1, 2022 Additions Reductions June 30, 2023 in One Year Certificates of Participation:
2010 COP 1,075,000 $ ‐ $ $ (345,000) $ 730,000 $ 355,000 Unamortized premium 207,860 ‐ (80,464) 127,396 80,464 Total Certificates of
Participation 1,282,860 ‐ (425,464) 857,396 435,464 Direct Borrowings:

Edison 234,828 ‐ (51,934) 182,894 51,370 SDGE 109,902 ‐ (40,368) 69,534 40,489 Other Liabilities:

Compensated absences 297,681 371,886 (417,397) 252,170 50,434 Claims and judgments (Note 7) 304,323 11,701 (204,222) 111,802 101,180 Total other liabilities 946,734 383,587 (713,921) 616,400 243,473 Total 2,229,594 $ $ 383,587 $ (1,139,385) $ 1,473,796 $ 678,937 Typically, the City liquidates its certificates of participation, direct borrowings, compensated absences, and claims and judgments with General Fund resources.

4.6.a
Packet Pg. 118 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
45 2010 Certificates of Participation
On January 26, 2010, the City (through the City’s blended component unit the Corporation) issued $17,190,000 of Certificates of Participation (COPs). Proceeds from the sale were placed in an irrevocable trust that was used to service the future debt requirements of the 2001 and 2003 Certificates of Participation. There are no amounts outstanding on the defeased COPs.

The 2010 COPs are direct obligations and pledge the full faith and credit of the City of Laguna Hills. The certificates were executed and delivered under the provisions of the Trust Agreement by and among The Bank of New York Mellon Trust Company, N.A, as trustee. The City is required under the Agreement to make rental payments each 15th day of the month immediately preceding each February 1st and August 1st from any source of available funds in an amount sufficient to pay the annual principal and interest due with respect to the Certificates.

The Serial bonds mature in annual installments ranging from $345,000 to $1,670,000, commencing February 1, 2011 and ending February 1, 2025. Interest accrues at rates between 4.00% and 5.00% and is payable semiannually. The annual requirements to amortize the certificates of participation as of June 30, 2023, are as follows:

Principal Interest Total
2024 $ 355,000 $ 30,581 $ 385,581 2025 375,000 15,938 390,938 Total $ 730,000 $ 46,519 $ 776,519 Year Ending June 30:

The COPs are subject to federal arbitrage regulations. The City calculated no arbitrage rebate due.

The COPs require a reserve in an amount that is the least of (1) 125% of the average annual lease payments, (2) 10% of the original proceeds, or (3) maximum annual lease payments. This reserve is fully funded as of June 30, 2023 with a balance of $1,467,163.

4.6.a
Packet Pg. 119 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
46 Direct Borrowings:

Southern California Edison On‐Bill Financing Program
In fiscal year 2016‐2017, the City approved the installation of energy‐efficient LED streets lights in areas of the City. The project was partially funded through Southern California Edison’s On‐Bill Financing Program. Through this program, the City received zero percent financing for approved energy reduction projects for $471,344 as of June 30, 2023. Since each individual item is below the City’s capitalization policy, there are no amounts recorded as capital assets for these purchases. The costs are repaid from energy savings over a period of up to ten years.

The unpaid balance as of June 30, 2023 was $182,894. The annual debt service requirements are as follows:

Principal
2024 51,370 $
2025 50,342
2026 49,811
2027 30,404
2028 967
Total 182,894 $
Year Ending June 30:

San Diego Gas & Electric On‐Bill Financing Program
In fiscal year 2017‐2018, the City approved the installation of energy‐efficient LED streets lights in areas of the City. The project was partially funded through San Diego Gas & Electric’s On‐Bill Financing Program. Through this program, the City received zero percent financing for approved energy reduction projects for $287,539 as of June 30, 2023. Since each individual item is below the City’s capitalization policy, there are no amounts recorded as capital assets for these purchases. The costs are repaid from energy savings over a period of up to ten years.

The unpaid balance as of June 30, 2023 was $69,534. The annual debt service requirements are as follows:

Principal
2024 40,489 $
2025 8,858
2026 8,858
2027 7,872
2028 3,457
Total 69,534 $
Year Ending June 30:

Compensated Absences
The City’s policies relating to compensated absences are described in Note 1. The long‐term portion of this liability, amounting to $201,736 at June 30, 2023 will be paid primarily from the General Fund.

4.6.a
Packet Pg. 120 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
47 Note 7 ‐ General Liability Insurance
In July 2003, the City joined the Exclusive Risk Management Authority of California (ERMAC), a pool of three other cities in California, namely Beaumont, Hayward, and Santa Maria, established under the provisions of California Government Code Section 6502, in order to jointly develop and fund General Liability insurance.

The ERMAC policy covers the City for losses due to personal injury, property damage, wrongful acts because of public officials’ errors and omissions and unfair employment practices (see the chart below for City’s retained limits and policy liability limits). Legal defense costs may be covered in addition to policy limits.

The City carries property, business interruption, flood, and boiler & machinery insurance with ERMAC (PEPIP Program) to cover all City property. In addition, Difference in Conditions (DIC) or earthquake, including flood, is provided by Everest Indemnity Insurance Company, which covers the Laguna Hills Civic Center only.

The City is also a member in an insurance pool through the Special District Risk Management Authority (SDRMA). SDRMA is a not‐for‐profit public agency formed under California Government Code Sections 6500 et.

Seq. SDRMA is governed by a board composed of members from participating agencies. The mission of SDRMA is to provide renewable, efficiently priced risk financing and risk management services through a financially sound pool. The City pays an annual premium for commercial insurance covering workers’ compensation and employers’ liability claims. Separate financial statements of SDRMA may be obtained at Special District Risk Management Authority, 1112 “I” Street, Suite 300, Sacramento, California 95814.

The following is a list of the allocation of risk coverage for the City as of June 30, 2023, taking in to account the City’s self‐insurance portion, if any.

Area of Risk City
Self‐Insurance
Carrier Risk Coverage
Municipal
Broad
General
Liability
 $100,000 for
Bodily Injury,
Personal Injury,
Property Damage
and public
officials E&O
 $1,000,000 for
employment
practices
liability
ERMAC/PRISM  $50M per occurrence and in
the annual aggregate excess of
limit of the SIR of $1M
Property,
Business
Interruption
and Boiler &
Machinery
 $10,000 per
occurrence
(specific perils
may be higher)

ERMAC (PEPIP
program)
 $1,000M per occurrence
combined
 $10M flood limit per
occurrence
 $100M combined business
interruption
 $100M boiler explosion &
machinery breakdown
combined

4.6.a
Packet Pg. 121 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
48 Area of Risk City
Self‐Insurance
Carrier Risk Coverage
Difference in
Conditions
(Multi‐peril)
Civic Center
only
 $25,000 per
occurrence
 5% earthquake
Trisura
Specialty
Insurance
Company
 $7.5M per occurrence and
annual aggregate
Crime  $2,500 CSAC‐EIA $10M for the following:
 Funds transfer fraud
 Employee dishonesty
 Forgery alterations
 Money & securitiestheft,
inside premises
 Money & securitiestheft,
outside premises
 Computer fraud
 Money order & counterfeit
paper currency
 Theft of other property, inside
premises
 Theft of other property,
outside premises
Cyber
Liability
 $50,000 per
occurrence
APIP  $45M annual aggregate for all
members combined
 $2M per occurrence and
annual aggregate
Recreational
Class &
Officials
Supplemental
 None SCMAF  $1M per occurrence
 $2M aggregate
 $100,000 property damage
 $1M personal and adv injury,
products
 $5,000 medical expense
Workers’
Compensation
& Employers’
Liability
 None SDRMA  Statutory Workers’
Compensation per
occurrence
 $5M Employer’s Liability per
occurrence

4.6.a
Packet Pg. 122 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
49 Claims Liability
In the financial statements prepared using the economic resources measurement focus, authoritative standards require that the liability for claims and the corresponding expense should be recognized in the period in which the underlying event occurs. Therefore, the liability of outstanding unallocated loss adjustment expenses (ULAE) must be established to represent the amount that will be paid out in claims as well as the expenses associated with processing of those claims. The City’s third‐party administrator provides the data on estimated claim liabilities (paid and reserves). As of June 30, 2023, the estimated outstanding ULAE was $111,802.

The following is a summary of the changes in the claims liability for the last two fiscal years:

FY 2022/23 FY 2021/22
Claims payable, beginning 304,323 $ $ 306,451 Claims and changes in estimate 11,701 104,323 Claims payments (204,222) (106,451) Claims payable, ending 111,802 $ $ 304,323 Fiscal Year Ending June 30,
In the current fiscal year, the City experienced claims for the amount of $279,998 which is $168,196 over the self‐insured retention amount. The amount over the self‐insurance limit is covered by the insurer.

During the fiscal year, none of the above programs of protection have experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2022‐2023.

4.6.a
Packet Pg. 123 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
50 Note 8 ‐ Pension Plans
a) General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Employee Pension Plans, cost‐sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full‐time employment. Members with five years of total service are eligible to retire at age 50 and 52 with statutorily reduced benefits for Tier I and PEPRA, respectively. All members are eligible for non‐industrial disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at the measurement period ending June 30, 2022, are summarized as follows:

Miscellaneous Plan
Tier 1 PEPRA
Prior to On or After
Hire date January 1, 2013 January 1, 2013
Benefit formula 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 ‐ 63 52 ‐ 67
Monthly benefits, as a % of
eligible compensation 1.092% to 2.418% 1.0% ‐ 2.5%
Required employee contribution rates 7.0% 7.25%
Required employer contribution rates:

Normal cost rate 9.790% 7.760%
Payments of unfunded liability $ 387,935 $ 4,047

4.6.a
Packet Pg. 124 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
51 Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended.

Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. For the period ended June 30, 2023, City contributions was $674,800.

Typically, the City liquidates its net pension liability with General Fund resources. b) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2023, the City reported net pension liabilities for its proportionate share of the net pension liability of all Plans as follows:

Proportionate
Share of Net
Pension Liability
Miscellaneous 5,599,726 $
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability.

The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportionate share of the net pension liability was based on a projection of the City’s long‐term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for all Plans as of the measurement dates ended June 30, 2021 and 2022 was as follows:

Miscellaneous
Proportion ‐ June 30, 2021 0.03594%
Proportion ‐ June 30, 2022 0.04848%
Change ‐ Increase (Decrease) 0.01254%

4.6.a
Packet Pg. 125 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
52 For the year ended June 30, 2023, the City recognized pension expense of $938,680. At June 30, 2023, (measurement period ending June 30, 2022), the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 674,800 $           ‐ $ Differences between expected and actual experience 112,453                                  75,316 Change in assumptions 573,809               ‐
Differences between the employer's contributions and the employer's proportionate share of contributions                           ‐                  518,352 Change in employer's proportion 631,574               ‐ Net differences between projected and actual earnings on plan investments 1,025,721           ‐
Total 3,018,357 $        $               593,668
Deferred outflows of resources related to contributions subsequent to the measurement date of $674,800 will be recognized as a reduction of the net pension liability in the year ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Amount
2024 456,087 $
2025 419,943
2026 246,493
2027 627,366
$ 1,749,889
Year Ending June 30,

4.6.a
Packet Pg. 126 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
53 Actuarial Assumptions
The total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The total pension liability was based on the following assumptions:

Miscellaneous
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry‐Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.9% (4)
Inflation 2.30%
Salary Increases (1)
Mortality Rate Table (2)
Post Retirement Benefit Increase (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS‐specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.
(3) The less of contract COLA or 2.3% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.3% thereafter.
(4) For the measurement period ended June 30, 2022, the discount rate rate was reduced from 7.15% to 6.90%.

Long‐term Expected Rate of Return
The long‐term expected rate of return on pension plan investments was determined using a building‐block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long‐term expected rate of return, CalPERS took into account both short‐term and long‐term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short‐term (first 10 years) and the long‐term (11+ years) using a building‐block approach. Using the expected nominal returns for both short‐term and long‐term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short‐term and long‐term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

4.6.a
Packet Pg. 127 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
54 The expected real rates of return by asset class are as follows:

Assumed Real Return
Asset Years
Allocation 1 ‐ 10 (a) (b)
Global Equity ‐ Cap‐Weighted 30.00% 4.45%
Global Equity ‐ Non‐Cap‐Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage‐Backed Securites 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage ‐5.00% ‐0.59%
100.0%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021‐22 Asset Liability Management study.

Asset Class (a)
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long‐term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1‐percentage point lower or 1‐percentage point higher than the current rate:

Miscellaneous
1% Decrease 5.90%
Net Pension Liability 9,046,547 $
Current Discount Rate 6.90%
Net Pension Liability 5,599,726 $
1% Increase 7.90%
Net Pension Liability 2,763,848 $

4.6.a
Packet Pg. 128 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
55 Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
c) Payable to the Pension Plans
At June 30, 2023, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2023.

Note 9 ‐ Deferred Compensation
The City offers its employees two kinds of defined contribution deferred compensation plans. City contribution rates may change if plan contracts are amended.

One plan is created in accordance with Internal Revenue Code Section 457. This plan, available to all employees, permits them to defer annually up to a maximum of $20,500 for calendar year 2022 and $22,500 for calendar year 2023. This maximum deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Amounts accumulated under the plan have been invested in several investment options administered by independent third‐party administrators at the direction of the employee.

The assets of the plan are held in trust for the exclusive benefit of the plan participants and their beneficiaries, and the assets cannot be diverted to any other purpose. The Trustee’s beneficial ownership of plan assets held in the MissionSquare Retirement is held for the further exclusive benefit of the plan participants and their beneficiaries. The plan permits loans, administered by the City, in accordance with approved loan guidelines.

The City contributes 3.75% of the employee’s compensation for part‐time seasonal employees. There are no City contributions required for full‐time and non‐seasonal part‐time employees. The City’s total contributions for the fiscal year ended June 30, 2023 was $2,925.

The other Plan is a defined contribution plan created in accordance with Internal Revenue Code Section 401A.

This Plan is available to all management staff regardless of years of service, and non‐management employees who have reached a minimum of ten years of service with the City. The City is the sole contributor to this Plan and sets the contribution amount to each class of eligible employees. The contribution limit is in accordance with the prevailing IRS regulation, which is 3% for eligible non‐management employees and 6.5% for eligible management employees. The City’s total contributions for the fiscal year ended June 30, 2023 was $85,942.

The assets of this Plan, held for the exclusive benefits of the Plan’s participants and their beneficiaries, are administered by the MissionSquare Retirement. Amounts accumulated under this Plan are self‐directed by each participant.

Note 10 ‐ Classification of Net Position and Governmental Fund Balances Net Position is measured on the full accrual basis of accounting as compared to the concept of Fund Balance, which is measured on the modified accrual basis of accounting.

4.6.a
Packet Pg. 129 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
56 Net Position Classifications
Net Position is divided into three captions as described below:

Net Investment in Capital Assets, describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less outstanding balance of any debt issued to finance these capital assets.

Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. Restricted net position is subject to constraints either by (1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulation of other governments or (2) imposed by law through constitutional provisions or enabling legislation.

Unrestricted, describes the portion of which is not restricted as to use.

Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted ‐ net position and unrestricted ‐ net position in the government‐wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

It is the City’s practice to consider restricted net position to have been depleted before unrestricted net position is applied.

Governmental Fund Balances Classifications
Fund Balances of the governmental funds are reported separately within classifications based on a hierarchy of constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, committed, assigned, and unassigned fund balance.

The nonspendable fund balance classification includes amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

Restricted fund balances are those that have externally imposed restrictions on their usage by creditors, such as through debt covenants, grantors, contributors, or laws and regulations.

Committed fund balances are those constrained to specific purposes determined by a formal action (resolution) of the City’s highest level of decision‐making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally. The City does not have any committed fund balances at June 30, 2023.

4.6.a
Packet Pg. 130 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
57 Assigned fund balances include amounts that are constrained by the City’s intent to be used for specific purposes. The City Manager has the authority to assign the portion of the fund balance in the General Fund that are constrained by the City’s intent to be used for reserves as established in the City’s Financial Policy No. 105 Section G.

Unassigned fund balances include the residual balance for the City’s General Fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.

Fund balances are presented in the following categories: nonspendable, restricted, assigned, and unassigned. A detailed schedule of fund balances at June 30, 2023 is as follows:

Other
General Governmental
Fund Funds Total
Nonspendable:

Prepaid items 105,889 $ ‐ $ $ 105,889 Total 105,889 ‐ 105,889 Restricted:

Capital projects ‐ 2,053,640 2,053,640 Public works ‐ 3,649,204 3,649,204 Community services ‐ 907,271 907,271 Police services ‐ 88,259 88,259 Community development ‐ 31,458 31,458 Debt service ‐ 1,472,833 1,472,833 Total ‐ 8,202,665 8,202,665 Assigned:

Claims liability 210,411 ‐ 210,411 Community Center and
Sports Complex maintenance 240,000 ‐ 240,000 Parks maintenance 365,700 ‐ 365,700 Slopes/Storm Drain maintenance 31,770 ‐ 31,770 Total 847,881 ‐ 847,881 Unassigned 20,711,877 ‐ 20,711,877 Total fund balances 21,665,647 $ $ 8,202,665 $ 29,868,312

4.6.a
Packet Pg. 131 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
58 Note 11 ‐ Joint Venture
Orange County Fire Authority
In January 1995, the City of Laguna Hills entered into a Joint Powers Agreement with the Cities of Buena Park, Cypress, Dana Point, Irvine, Laguna Niguel, Lake Forest, La Palma, Los Alamitos, Mission Viejo, Garden Grove, San Clemente, San Juan Capistrano, Seal Beach, Stanton, Tustin, Villa Park, and Yorba Linda and the County of Orange to create the Orange County Fire Authority (the Authority). Since the creation of the Authority, the Cities of Aliso Viejo, Laguna Woods, Rancho Santa Margarita, Santa Ana, and Westminster have joined the Authority as members eligible for protection services. The purpose of the Authority is to provide for mutual fire protection, prevention and suppression services and related and incidental services including, but not limited to, emergency medical and transport services, as well as providing facilities and personnel for such services. The effective date of formation was March 1, 1995. The Authority’s governing board consists of one representative from each City and two from the County. The operations of the Authority are funded with structural fire fees collected by the County through the property tax roll for the unincorporated area and on behalf of all member Cities except for the Cities of Stanton, Tustin, San Clemente, Buena Park, Garden Grove, Santa Ana, Seal Beach and Westminster.

The County pays all structural fire fees it collects to the Authority. The Cities of Stanton, Tustin, San Clemente, Buena Park, Garden Grove, Santa Ana, Seal Beach and Westminster are considered “cash contract cities” and accordingly make cash contributions based on the Authority’s annual budget. No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2023. Upon dissolution of the Authority, all surplus money and property of the Authority will be conveyed or distributed to each member in proportion to all funds provided to the Authority by that member or by the County on behalf of that member during its membership.

Complete financial statements may be obtained from the Orange County Fire Authority, 1 Fire Authority Road, Irvine, California 92602.

Note 12 ‐ Related Party Transactions
The City’s enterprise fund consists of owning a piece of commercial real estate and leasing it to various entities.

The total square footage of the building is 51,944. The City is a tenant using approximately 21,033 square feet of the building. The enterprise fund does not charge the City rent. The estimated annual rent for the space occupied by the City would be approximately $549,965.

Note 13 ‐ Commitments and Contingencies
The City is occasionally a defendant in lawsuits which have arisen in the normal course of business. Damages are alleged in some of these actions and their outcome cannot be predicted with certainty. However, in the opinion of the City Attorney, the outcome of these actions will not have a material adverse effect on the financial position of the City.

4.6.a
Packet Pg. 132 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
59 The City participates in several federal and state grant programs. The programs are subject to examination by the granters and the amount, if any, of expenses which may be disallowed by the granting agency cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Note 14 ‐ Leases
Governmental Activities/General Fund:

The City has accrued a receivable for five land leases. The remaining receivable for these leases was $706,504 for the year ended June 30, 2023. Deferred inflows related to these leases were $677,608 as of June 30, 2023.

Interest revenue recognized on these leases was $22,680 for the year ended June 30, 2023. Principal receipts of $87,082 were recognized during the fiscal year. The interest rate on the leases is between 2.25% and 3.25%.

Final receipt is expected in fiscal year 2038.

The future receipts on these leases are as follows:

Years Ending June 30, Principal Interest Total
$          102,825 $             19,229 $          122,054 106,029                16,775              122,804
81,923                14,239                96,162
84,727                12,231                96,958
44,319                10,151                54,470
124,591                38,207              162,798
162,090                16,478              178,568
$          706,504 $          127,310 $          833,814 2029 ‐ 2033
2034 ‐ 2038
2024
2025
2026
2027
2028
Business‐Type Activities ‐ Property Leasing:

The City has accrued a receivable for 12 building leases. The remaining receivable for these leases was $1,212,734 for the year ended June 30, 2023. Deferred inflows related to these leases were $1,151,714 as of June 30, 2023. Interest revenue recognized on these leases was $45,631 for the year ended June 30, 2023.

Principal receipts of $192,566 were recognized during the fiscal year. The interest rate on the leases is between

1.25% and 4.40%. Final receipt is expected in fiscal year 2036.

The lease agreement call for payments that are partially variable and therefore were not included in lease receivable or deferred inflow of resources for leases. These variable payments are a result of the underlying lease measured not on a fixed rate, but rather variable due to the underlying payments derived from 1.18% through 5.83 percent of lessee’s share of operating expense. A total of $241,146 was recognized as revenue from these variable payments for the year ended June 30, 2023.

4.6.a
Packet Pg. 133 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Notes to Basic Financial Statements
June 30, 2023
60 The future receipts on these leases are as follows:

Years Ending June 30, Principal Interest Total
$          341,941 $             29,596 $          371,537 204,057                23,324              227,381
130,872                18,873              149,745
73,010                16,221                89,231
60,653                14,127                74,780
306,393                39,641              346,034
95,808                  3,810                99,618
$       1,212,734 $          145,592 $       1,358,326
2034 ‐ 2036
2024
2025
2026
2027
2028
2029 ‐ 2033

4.6.a
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4.6.a
Packet Pg. 135 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Required Supplementary Information

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4.6.a
Packet Pg. 137 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 61 City of Laguna Hills, California
Schedule of Proportionate Share of the Net Pension Liability Last Ten Fiscal Years*
June 30, 2023
Fiscal year ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement period June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Plan's proportion of the
net pension liability 0.04848% 0.03594% 0.04120% 0.03899% 0.03658% 0.03641% 0.03413% 0.02851% 0.03634% Plan's proportionate share of the
net pension liability 5,599,726 $ $ 1,943,651 $ 4,483,185 $ 3,995,763 $ 3,524,547 $ 3,610,550 $ 2,953,536 $ 1,956,617 $ 2,261,011 Plan's covered payroll 2,820,234 $ $ 2,968,115 $ 3,079,318 $ 2,978,329 $ 3,199,277 $ 3,197,331 $ 3,076,464 $ 3,093,576 $ 2,893,989 Plan's proportionate share of the
net pension liability as a percentage
of covered payroll 198.56% 65.48% 145.59% 134.16% 110.17% 112.92% 96.00% 63.25% 78.13% Plan's fiduciary net position as a percentage
of the Plan's total pension liability 88.29% 88.29% 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82% Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long‐term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measure date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.

From fiscal year June 30, 2021 to June 30, 2022:

There were no changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%.
*
‐ Fiscal year 2015 was the 1st year of implementation; therefore, only nine years are shown.

4.6.a
Packet Pg. 138
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending 62 City of Laguna Hills, California
Schedule of Contributions
Last Ten Fiscal Years*
June 30, 2023
Fiscal year ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required 674,800 $ $ 587,229 $ 546,745 $ 488,471 $ 422,127 $ 378,900 $ 346,439 $ 308,768 $ 278,231 contribution (actuarially determined)
Contributions in relation to the
actuarially determined contribution (674,800) (587,229) (546,745) (488,471) (422,127) (378,900) (346,439) (308,768) (278,231) Contribution deficiency (excess) $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ Covered payroll 3,142,833 $ $ 2,820,234 $ 2,968,115 $ 3,079,318 $ 2,978,329 $ 3,199,277 $ 3,197,331 $ 3,076,464 $ 3,093,576 Contribution as a percentage of
covered payroll 21.47% 20.82% 18.42% 15.86% 14.17% 11.84% 10.84% 10.04% 8.99% Notes to Schedule:

Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012Methods and Assumptions Used to Determine Contribution Rates:

Actuarial cost method Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Amortization method (1) (1) (1) (1) (1) (1) (1) (1) (1) Asset valuation method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value 15 Year Smoothed
Market Method
Inflation 2.50% 2.50% 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75%Salary increases (2) (2) (2) (2) (2) (2) (2) (2) (2) Investment rate of return 7.00 (3) 7.15 (3) 7.15 (3) 7.25 (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3)Retirement age (4) (4) (4) (4) (4) (4) (4) (4) (4) Mortality (5) (5) (5) (5) (5) (5) (5) (5) (5)(1) Level percentage of payroll, closed(2) Depending on age, service, and type of employment (3) Net of pension plan investment expense, including inflation(4) 50 years (2%@60), 52 years (2%@62)** (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board
*
‐ Fiscal year 2015 was the 1st year of implementation; therefore, only nine years are shown.

4.6.a
Packet Pg. 139
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending See Note to Required Supplementary Information 63
City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Taxes $ 20,521,943 $ 20,521,943 $ 22,448,828 $ 1,926,885 Licenses and permits 1,124,513 1,124,513 1,381,282 256,769 Intergovernmental 248,759 248,759 322,692 73,933 Charges for services 930,795 930,795 2,482,814 1,552,019 Fines and forfeitures 179,375 179,375 224,731 45,356 Investment income 100,000 100,000 515,754 415,754 Total revenues 23,105,385 23,105,385 27,376,101 4,270,716 Expenditures:

Current:

General government 4,491,907 4,782,999 4,341,841 441,158 Public works 5,032,134 4,485,620 4,220,252 265,368 Community development 1,451,113 1,927,613 1,405,880 521,733 Community services 2,310,411 2,488,542 2,303,939 184,603 Public safety 10,106,151 10,701,708 10,096,445 605,263 Capital outlay 63,200 310,858 269,744 41,114 Debt service:

Principal retirement ‐ 90,000 92,302 (2,302) Total expenditures 23,454,916 24,787,340 22,730,403 2,056,937 Excess (Deficiency) of Revenues
Over (Under) Expenditures (349,531) (1,681,955) 4,645,698 6,327,653 Other Financing Sources (Uses):

Transfers in 2,082,761 5,254,464 4,392,118 (862,346) Transfers out (1,923,467) (3,904,784) (1,166,618) 2,738,166 Total other financing
sources (uses) 159,294 1,349,680 3,225,500 1,875,820 Net Change in Fund Balance (190,237) (332,275) 7,871,198 8,203,473 Fund Balance at Beginning of the Year 13,794,449 13,794,449 ‐ 13,794,449 Fund Balance at End of the Year 13,604,212 $ $ 13,462,174 $ 21,665,647 $ 8,203,473 Budget Amounts

4.6.a
Packet Pg. 140 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Note to Required Supplementary Information 64
City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – ARPA Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental 3,732,689 $ $ 3,732,689 $ 3,732,689 $ ‐ Total revenues 3,732,689 3,732,689 3,732,689 ‐ Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,732,689 3,732,689 3,732,689 ‐ Other Financing Sources (Uses):

Transfers out (839,171) (3,732,689) (3,732,689) ‐ Net Change in Fund Balance 2,893,518 ‐ ‐ ‐ Fund Balance at Beginning of the Year ‐ ‐ ‐ ‐ Fund Balance at End of the Year 2,893,518 $ ‐ $ ‐ $ ‐ $ Budget Amounts

4.6.a
Packet Pg. 141 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 65 City of Laguna Hills, California
Note to Required Supplementary Information
Year Ended June 30, 2023
Note 1 ‐ Budgets and Budgetary Accounting
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America and are used as a management control device. The City Council approves the two‐year budget submitted by the City Manager prior to the beginning of the new two‐year budget cycle. The Council conducts public hearings prior to its adoption. All remaining appropriations in the Operating Budget will be carried over from the first year to the second year of the two‐year budget period. The City Council has the legal authority to amend the budget at any time during the fiscal year. The City Manager has the authority to transfer budgeted amounts between funds and divisions as deemed necessary to meet the City’s needs within the overall legal limit established by the City Council. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. The level of budgetary control is total expenditures by fund. Formal budgetary integration is employed as a management control device during the fiscal year for the governmental fund types.

Biennial budgets are adopted for all governmental funds except for certain special revenue funds and capital projects funds, which adopt project length budgets. The following Special Revenue Funds did not have an adopted budget during the current fiscal year: CARITS, Public Art, Park In‐Lieu, and Water Conservation.

4.6.a
Packet Pg. 142 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) This pag
e intentionally left blank.

4.6.a
Packet Pg. 143 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Supplementary Information

4.6.a
Packet Pg. 144 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) This pag
e intentionally left blank.

4.6.a
Packet Pg. 145 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 66 City of Laguna Hills, California
Non‐Major Governmental Funds
June 30, 2023
Special Revenue Funds:

Gas Tax Fund ‐ Used to account for revenues and expenditures for general street improvement maintenance related to the City’s share of state gasoline taxes collected under Street and Highway Code, Sections 2103, 2105, 2106, 2107 and 2107.5.

Measure M Fund ‐ Used to account for Measure M revenues from the Orange County Transportation Authority (OCTA) to be used for street improvement and transportation system maintenance.

SB1 RMRA Fund ‐ Used to account for revenues received from the State SB1 taxes. Expenditures are restricted to basic road maintenance, rehabilitation, and critical safety projects.

AB 2766 Fund ‐ Used to account for revenues and expenditures for air quality improvement. AB 2766 was enacted to authorize air pollution control districts to impose fees on motor vehicles.

Senior Mobility Program Fund ‐ Used to account for revenues and expenditures related to help design and operate a transit program that best fits the needs of older adults under the OCTA Senior Mobility Program.

CARITS Fund ‐ Used to account for revenues and expenditures related to the cooperative agreement with the County of Orange for Coastal Area Road Improvement and Traffic Signals (CARITS) fee program.

CDBG Fund ‐ Used to account for revenues and expenditures to improve local and national objectives to provide decent and safe housing for low‐ and moderate‐income families. This is grant funding obtained from the United States Department of Housing and Urban Development (HUD) for the purposes of rehabilitating “eligible deteriorating housing.”
Public Art Fund ‐ Used to account for revenues and expenditures related to the City’s Public Art program designed to enhance the cultural and aesthetic environment and to encourage creativity, education and appreciation of the arts.

Beverage Recycling Fund ‐ Used to account for revenues and expenditures related to grant funding received from the California State Department of Conservation for the purpose of implementing and supporting beverage container recycling programs within the City.

CR&R Recycling Fees Fund ‐ Used to account for contractual revenues received from the City’s franchised hauler, CR&R, for the purposes of recycling consulting services and general recycling activity expenditures.

C & D Forfeited Deposits Fund ‐ Used to account for Construction and Demolition Waste Recycling Program security deposits, which have been forfeited by the applicant, used for administration costs of the program, or on programs to divert the waste from construction, demolition and alteration projects from landfill disposal, or other recycling programs.

SB 1383 Grant Fund – Used to account for a one‐time grant program meant to provide aid in the implementation of regulations adopted by CalRecycle pursuant to Chapter 395, Statutes of 2016 and SB170 Budget Act of 2021.

4.6.a
Packet Pg. 146 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 68 City of Laguna Hills, California
Non‐Major Governmental Funds
June 30, 2023
Park In‐Lieu Fund ‐ Used to account for revenues received and expenditures made related to park fees. The Quimby Act authorizes the City to require residential subdivisions to dedicate land for parks or pay fees in‐lieu of dedication.

CASp Fund ‐ (Certified Access Specialist Program) Used to account for revenues and expenditures related to Senate Bill 1186 funds that are to be used for disability access and compliance with construction‐related accessibility requirements.

Water Conservation Fund ‐ Used to account for revenues and expenditures related to water use efficiency and conservation programs.

Grants & Contributions Fund ‐ Used to account for revenues and expenditures made for specific projects including landscape improvements and certain capital expenditures. Land developers and builders, as well as other public agencies, provide financing.

Public Art VALH MGP Fund ‐ Used to account for revenues received and expenditures made related to the City's public art program designed to enhance the cultural and aesthetic environment and to encourage creativity, education and appreciation of the arts.

SLESF/COPS BRULTE Fund ‐ Used to account for revenues received and expenditures made for front line law enforcement services related to the allocations received through the State Supplemental Law Enforcement Services Fund (SLESF)/COPS program.

Debt Service Fund:

Debt Service Fund ‐ Used to pay the City’s debt service on its COP issue.

4.6.a
Packet Pg. 147 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 69 City of Laguna Hills, California
Combining Balance Sheet
Non‐Major Governmental Funds
June 30, 2023
SB1
Gas Tax Measure M RMRA
Assets:

Cash and investments $ ‐ 851,972 $ $ 584,794 Receivables:

Accounts ‐ ‐ ‐ Interest ‐ ‐ ‐ Due from other governments 70,021 362,761 122,761 Restricted cash and investments ‐ ‐ ‐ Total assets $ 921,993 $ 362,761 $ 707,555 Liabilities and Fund Balances
Liabilities:

Accounts payable $ ‐ $ ‐ 130,687 $ Due to other governments ‐ 1,200 ‐ Due to other funds ‐ ‐ 69,583 Total liabilities ‐ ‐ 201,470 Fund Balances:

Restricted 921,993 161,291 707,555 Total fund balances 921,993 161,291 707,555 Total liabilities and
fund balances $ 921,993 $ 362,761 $ 707,555 Special Revenue Funds

4.6.a
Packet Pg. 148 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 70 City of Laguna Hills, California
Combining Balance Sheet
Non‐Major Governmental Funds
June 30, 2023
Assets:

Cash and investments
Receivables:

Accounts
Interest
Due from other governments
Restricted cash and investments
Total assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Due to other governments
Due to other funds
Total liabilities
Fund Balances:

Restricted
Total fund balances
Total liabilities and
fund balances
Senior
Mobility
AB 2766 Program CARITS
$          184,639 $          207,205 $       1,310,717 ‐ ‐                            ‐
‐ ‐                            ‐
10,256                   ‐ 8,274
‐ ‐                            ‐
$          194,895 $          215,479 $       1,310,717 $                        ‐ $                ‐ 1,030 $
‐ ‐                            ‐
‐ ‐                            ‐
‐                   ‐ 1,030
194,895              214,449          1,310,717
194,895              214,449          1,310,717
$          194,895 $          215,479 $       1,310,717 Special Revenue Funds

4.6.a
Packet Pg. 149 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 71 City of Laguna Hills, California
Combining Balance Sheet
Non‐Major Governmental Funds
June 30, 2023
Assets:

Cash and investments
Receivables:

Accounts
Interest
Due from other governments
Restricted cash and investments
Total assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Due to other governments
Due to other funds
Total liabilities
Fund Balances:

Restricted
Total fund balances
Total liabilities and
fund balances
Public Beverage
CDBG Art Recycling
$                        ‐ $          197,334 $               8,778 ‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
$                        ‐ $          197,334 $               8,778 $                         ‐ ‐ $                         ‐ $ ‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐              197,334                  8,778
‐              197,334                  8,778
$                        ‐ $          197,334 $               8,778 Special Revenue Funds

4.6.a
Packet Pg. 150 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 72 City of Laguna Hills, California
Combining Balance Sheet
Non‐Major Governmental Funds
June 30, 2023
Assets:

Cash and investments
Receivables:

Accounts
Interest
Due from other governments
Restricted cash and investments
Total assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Due to other governments
Due to other funds
Total liabilities
Fund Balances:

Restricted
Total fund balances
Total liabilities and
fund balances

CR&R C & D
Recycling Forfeited SB 1383
Fees Deposits Grant
$       116,235 $     64,500 $    10,085
‐ ‐    ‐
‐ ‐    ‐
‐ ‐    ‐
‐ ‐    ‐
$       116,235 $     64,500 $    10,085
$        8,502 $      270 $    9,057
‐ 30,635   ‐
‐ ‐    ‐
8,502   30,905     9,057
107,733   33,595     1,028
107,733   33,595     1,028
$       116,235 $     64,500 $    10,085
Special Revenue Funds

4.6.a
Packet Pg. 151 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 73 City of Laguna Hills, California
Combining Balance Sheet
Non‐Major Governmental Funds
June 30, 2023
Assets:

Cash and investments
Receivables:

Accounts
Interest
Due from other governments
Restricted cash and investments
Total assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Due to other governments
Due to other funds
Total liabilities
Fund Balances:

Restricted
Total fund balances
Total liabilities and
fund balances
Water
Park In‐Lieu CASp Conservation
$       2,053,640 $             30,229 $          352,753 ‐                   ‐ 1,229
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
$       2,053,640 $             31,458 $          352,753 $                         ‐ ‐ $                         ‐ $ ‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
2,053,640                31,458              352,753
2,053,640                31,458              352,753
$       2,053,640 $             31,458 $          352,753 Special Revenue Funds

4.6.a
Packet Pg. 152 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 74 City of Laguna Hills, California
Combining Balance Sheet
Non‐Major Governmental Funds
June 30, 2023
Assets:

Cash and investments
Receivables:

Accounts
Interest
Due from other governments
Restricted cash and investments
Total assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Due to other governments
Due to other funds
Total liabilities
Fund Balances:

Restricted
Total fund balances
Total liabilities and
fund balances
Grants & Public Art SLESF/COPS
Contributions VALH MGP BRULTE
$      ‐ $          344,354 $                   2,100
‐ ‐                   ‐
‐ ‐                   ‐
‐ ‐                        86,159
‐ ‐                   ‐
$      ‐ $          344,354 $                 88,259
$      ‐ $     ‐ $                            ‐
‐ ‐                   ‐
‐ ‐                   ‐
‐ ‐                   ‐
‐      344,354      88,259
‐      344,354      88,259
$      ‐ $          344,354 $                 88,259
Special Revenue Funds

4.6.a
Packet Pg. 153 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 75 City of Laguna Hills, California
Combining Balance Sheet
Non‐Major Governmental Funds
June 30, 2023
Assets:

Cash and investments
Receivables:

Accounts
Interest
Due from other governments
Restricted cash and investments
Total assets
Liabilities and Fund Balances
Liabilities:

Accounts payable
Due to other governments
Due to other funds
Total liabilities
Fund Balances:

Restricted
Total fund balances
Total liabilities and
fund balances
Total
Non‐Major
Governmental
Debt Service Funds
$                        ‐ $       6,319,335
‐                  1,229
5,670 5,670
‐              660,232
1,467,163          1,467,163
$       1,472,833 $       8,453,629
$                        ‐ $          149,546
‐                31,835
‐                69,583
‐              250,964
1,472,833          8,202,665
1,472,833          8,202,665
$       1,472,833 $       8,453,629

4.6.a
Packet Pg. 154 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 76 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non‐Major Governmental Funds
Year Ended June 30, 2023
SB1
Gas Tax Measure M RMRA
Revenues:

Taxes $       ‐ $       ‐ $       ‐
Licenses and permits      ‐ ‐     ‐
Intergovernmental      726,030     1,014,238   700,569
Charges for services      ‐ ‐     ‐
Investment income    14,861    1,187   6,986
Other revenues      ‐ ‐     ‐
Total revenues      740,891     1,015,425   707,555
Expenditures:

Current:

Public works      ‐     619,154 ‐
Community services      ‐ ‐     ‐
Capital outlay      ‐ ‐     ‐
Debt service:

Principal      ‐ ‐     ‐
Interest and fiscal charges      ‐ ‐     ‐
Total expenditures      ‐     619,154 ‐
Excess (deficiency) of revenues
over (under) expenditures      740,891     396,271   707,555 Other Financing Sources (Uses):

Transfers in      ‐ ‐     ‐
Transfers out   (61,428)   (199,980) ‐
Total other financing sources (uses)   (61,428)   (199,980) ‐ Net Change in Fund Balances      679,463     196,291   707,555 Fund Balances (Deficit), Beginning of Year      242,530      (35,000) ‐ Fund Balances, End of Year $      921,993 $      161,291 $          707,555 Special Revenue Funds

4.6.a
Packet Pg. 155 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 77 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes
Licenses and permits
Intergovernmental
Charges for services
Investment income
Other revenues
Total revenues
Expenditures:

Current:

Public works
Community services
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year
Senior
Mobility
AB 2766 Program CARITS
$                         ‐ ‐ $                         ‐ $ ‐ ‐                            ‐
72,842                 ‐ 51,209
‐ ‐                            ‐
5,873                  5,023                34,236
‐ ‐                            ‐
78,715                56,232                34,236
‐ ‐                            ‐
‐                 ‐ 14,124
110,817                            ‐ ‐
‐ ‐                            ‐
‐ ‐                            ‐
110,817                 ‐ 14,124
(32,102)                42,108                34,236
‐                   ‐ 2,825
‐ ‐                            ‐
‐                   ‐ 2,825
(32,102)                44,933                34,236
226,997              169,516          1,276,481
$          194,895 $          214,449 $       1,310,717 Special Revenue Funds

4.6.a
Packet Pg. 156 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 78 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes
Licenses and permits
Intergovernmental
Charges for services
Investment income
Other revenues
Total revenues
Expenditures:

Current:

Public works
Community services
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year
Public Beverage
CDBG Art Recycling
$                         ‐ ‐ $                         ‐ $ ‐ ‐                            ‐
‐               ‐ 120,000
‐ ‐                            ‐
‐                  5,154                      229
‐ ‐                            ‐
‐              125,154                      229
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐              125,154                      229
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐              125,154                      229
‐                72,180                  8,549
$                        ‐ $          197,334 $               8,778 Special Revenue Funds

4.6.a
Packet Pg. 157 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 79 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes
Licenses and permits
Intergovernmental
Charges for services
Investment income
Other revenues
Total revenues
Expenditures:

Current:

Public works
Community services
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year

CR&R C & D
Recycling Forfeited SB 1383
Fees Deposits Grant
$           ‐ 180,000 $                         ‐ $
‐                 ‐ 67,871
‐ ‐                            ‐
‐ ‐                            ‐
4,079                      385                      936 ‐ ‐                            ‐
184,079                68,256                      936
85,415                53,438                44,780
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
85,415                53,438                44,780
98,664                14,818               (43,844)
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
98,664                14,818               (43,844)
9,069                18,777                44,872
$          107,733 $             33,595 $               1,028 Special Revenue Funds

4.6.a
Packet Pg. 158 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 80 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes
Licenses and permits
Intergovernmental
Charges for services
Investment income
Other revenues
Total revenues
Expenditures:

Current:

Public works
Community services
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year
Water
Park In‐Lieu CASp Conservation
$                         ‐ ‐ $                         ‐ $ ‐                   ‐ 3,914
‐ ‐                            ‐
‐ 2,000,000                            ‐
53,640                      746                  9,214
‐ ‐                            ‐
2,053,640                  4,660                  9,214 ‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
2,053,640                  4,660                  9,214 ‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
2,053,640                  4,660                  9,214 ‐                26,798              343,539
$       2,053,640 $             31,458 $          352,753 Special Revenue Funds

4.6.a
Packet Pg. 159 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 81 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes
Licenses and permits
Intergovernmental
Charges for services
Investment income
Other revenues
Total revenues
Expenditures:

Current:

Public works
Community services
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year
Grants & Public Art SLESF/COPS
Contributions VALH MGP BRULTE
$                         ‐ ‐ $                         ‐ $ ‐ ‐                            ‐
‐ 208,203                                         251,430 ‐               ‐ 350,000
‐                  9,354                  2,829
‐ 4,055                            ‐
212,258              359,354              254,259
‐ ‐                            ‐
‐                 ‐ 15,000
‐ ‐                            ‐
‐ ‐                            ‐
‐ ‐                            ‐
‐                 ‐ 15,000
212,258              344,354              254,259
‐ ‐                            ‐
‐ (82,021)                                       (166,000) ‐ (82,021)                                       (166,000) 130,237              344,354                88,259
‐ (130,237)                            ‐
$                        ‐ $          344,354 $             88,259 Special Revenue Funds

4.6.a
Packet Pg. 160 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 82 City of Laguna Hills, California
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non‐Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes
Licenses and permits
Intergovernmental
Charges for services
Investment income
Other revenues
Total revenues
Expenditures:

Current:

Public works
Community services
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year
Total
Non‐Major
Governmental
Debt Service Funds
$      ‐ $   180,000
‐   71,785
‐    3,144,521
‐    2,350,000
74,719   229,451
‐   4,055
74,719    5,979,812
‐   802,787
‐   29,124
‐   110,817
345,000   345,000
46,423   46,423
391,423    1,334,151
(316,704)    4,645,661
2,041   4,866
‐    (509,429)
2,041    (504,563)
(314,663)    4,141,098
1,787,496    4,061,567
$       1,472,833 $    8,202,665

4.6.a
Packet Pg. 161 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 83 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Capital Projects Fund – Major Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Expenditures:

Current:

Public works 200,000 $ $ 200,000 $ 155,813 $ 44,187 Capital outlay 825,000 2,556,317 755,939 1,800,378 Total expenditures 1,025,000 2,756,317 911,752 1,844,565 Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,025,000) (2,756,317) (911,752) 1,844,565 Other Financing Sources (Uses):

Transfers in 1,025,000 2,756,317 911,752 (1,844,565) Net Change in Fund Balance ‐ ‐ ‐ ‐ Fund Balance at Beginning of the Year ‐ ‐ ‐ ‐ Fund Balance at End of the Year $ ‐ ‐ $ ‐ $ ‐ $ Budget Amounts

4.6.a
Packet Pg. 162 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 84 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Gas Tax Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 779,803 $ 779,803 $ 726,030 $ (53,773) Investment income ‐ ‐ 14,861 14,861 Total revenues 779,803 779,803 740,891 (38,912) Excess (Deficiency) of Revenues
Over (Under) Expenditures 779,803 779,803 740,891 (38,912) Other Financing Sources (Uses):

Transfers out ‐ (220,432) (61,428) 159,004 Net Change in Fund Balance 779,803 559,371 679,463 120,092 Fund Balance at Beginning of the Year 242,530 242,530 242,530 ‐ Fund Balance at End of the Year $ 1,022,333 $ 801,901 $ 921,993 $ 120,092 Budget Amounts

4.6.a
Packet Pg. 163 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 85 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Measure M Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 593,590 $ 793,590 $ 1,014,238 $ 220,648 Investment income ‐ ‐ 1,187 1,187 Total revenues 593,590 793,590 1,015,425 221,835 Expenditures:

Current:

Public works ‐ 690,000 619,154 70,846 Excess (Deficiency) of Revenues
Over (Under) Expenditures 593,590 103,590 396,271 292,681 Other Financing Sources (Uses):

Transfers out (593,590) (200,000) (199,980) 20 Net Change in Fund Balance ‐ (96,410) 196,291 292,701 Fund Balances (Deficit), Beginning of Year ‐ ‐ (35,000) (35,000) Fund Balance at End of the Year $ ‐ $ (96,410) $ 161,291 $ 257,701 Budget Amounts

4.6.a
Packet Pg. 164 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 86 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual SB1 RMRA Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 622,831 $ 622,831 $ 700,569 $ 77,738 Investment income ‐ ‐ 6,986 6,986 Total revenues 622,831 622,831 707,555 84,724 Excess (Deficiency) of Revenues
Over (Under) Expenditures 622,831 622,831 707,555 84,724 Other Financing Sources (Uses):

Transfers out ‐ ‐ (85,343) 85,343 Net Change in Fund Balance 622,831 537,488 707,555 170,067 Fund Balance at Beginning of the Year ‐ ‐ ‐ ‐ Fund Balance at End of the Year 622,831 $ $ 537,488 $ 707,555 $ 170,067 Budget Amounts

4.6.a
Packet Pg. 165 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 87 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual AB 2766 Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 40,000 $ 40,000 $ 72,842 $ 32,842 Investment income ‐ ‐ 5,873 5,873 Total revenues 40,000 40,000 78,715 38,715 Expenditures:

Capital outlay 50,000 110,817 ‐ 110,817 Net Change in Fund Balance (10,000) (70,817) (32,102) 38,715 Fund Balance at Beginning of the Year 226,997 226,997 ‐ 226,997 Fund Balance at End of the Year 216,997 $ $ 156,180 $ 194,895 $ 38,715 Budget Amounts

4.6.a
Packet Pg. 166 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 88 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Senior Mobility Program Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 40,909 $ 40,909 $ 51,209 $ 10,300 Investment income ‐ ‐ 5,023 5,023 Total revenues 40,909 40,909 56,232 15,323 Expenditures:

Current:

Community services       53,930         53,930           14,124   39,806 Capital outlay   300     300 ‐                    300
Total expenditures       54,230         54,230           14,124   40,106 Excess (Deficiency) of Revenues
Over (Under) Expenditures      (13,321)        (13,321)           42,108   55,429 Other Financing Sources (Uses):

Transfers in 10,846 10,846 2,825 (8,021) Net Change in Fund Balance (2,475) (2,475) 44,933 47,408 Fund Balance at Beginning of the Year 169,516 169,516 169,516 ‐ Fund Balance at End of the Year $ 167,041 $ 167,041 $ 214,449 $ 47,408 Budget Amounts

4.6.a
Packet Pg. 167 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 89 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual CDBG Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 100,000 $ ‐ 100,000 $ $ (100,000) Expenditures:

Current:

Community development 100,000 ‐ 100,000 100,000 Net Change in Fund Balance ‐ ‐ ‐ ‐ Fund Balance at Beginning of the Year ‐ ‐ ‐ ‐ Fund Balance at End of the Year $ ‐ ‐ $ ‐ $ ‐ $ Budget Amounts

4.6.a
Packet Pg. 168 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 90 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Beverage Recycling Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Taxes $ 9,000 $ ‐ 9,000 $ $ (9,000) Investment income ‐ ‐ 229 229 Total revenues 9,000 9,000 229 (8,771) Expenditures:

Current:

Public works 9,061 9,061 ‐ 9,061 Net Change in Fund Balance (61) (61) 229 290 Fund Balance at Beginning of the Year 8,549 8,549 8,549 ‐ Fund Balance at End of the Year $ 8,488 $ 8,488 $ 8,778 $ 290 Budget Amounts

4.6.a
Packet Pg. 169 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 91 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual CR&R Recycling Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Taxes $ 110,000 $ 110,000 $ 180,000 $ 70,000 Investment income ‐ ‐ 4,079 4,079 Total revenues 110,000 110,000 184,079 74,079 Expenditures:

Current:

Public works 109,000 109,000 85,415 23,585 Net Change in Fund Balance 1,000 1,000 98,664 97,664 Fund Balance at Beginning of the Year 9,069 9,069 ‐ 9,069 Fund Balance at End of the Year 10,069 $ $ 10,069 $ 107,733 $ 97,664 Budget Amounts

4.6.a
Packet Pg. 170 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 92 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual C & D Forfeited Deposits Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Licenses and permits 100,000 $ $ 100,000 $ 67,871 $ (32,129) Investment income ‐ ‐ 385 385 Total revenues 100,000 100,000 68,256 (31,744) Expenditures:

Current:

Public works 130,000 130,000 53,438 76,562 Net Change in Fund Balance (30,000) (30,000) 14,818 44,818 Fund Balance at Beginning of the Year 18,777 18,777 18,777 ‐ Fund Balance at End of the Year (11,223) $ $ (11,223) $ 33,595 $ 44,818 Budget Amounts

4.6.a
Packet Pg. 171 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 93 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual SB 1383 Grant Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Investment income $ ‐ ‐ $ $ 936 $ 936 Expenditures:

Current:

Public works ‐ 44,821 44,780 41 Net Change in Fund Balance ‐ (44,821) (43,844) 977 Fund Balance at Beginning of the Year 44,872 44,872 ‐ 44,872 Fund Balance at End of the Year 44,872 $ $ 51 $ 1,028 $ 977 Budget Amounts

4.6.a
Packet Pg. 172 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 94 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual CASp Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Licenses and permits 5,000 $ $ 5,000 $ 3,914 $ (1,086) Investment income ‐ ‐ 746 746 Total revenues 5,000 5,000 4,660 (340) Expenditures:

Current:

Community development 5,000 5,000 ‐ 5,000 Net Change in Fund Balance ‐ ‐ 4,660 4,660 Fund Balance at Beginning of the Year 26,798 26,798 26,798 ‐ Fund Balance at End of the Year $ 26,798 $ 26,798 $ 31,458 $ 4,660 Budget Amounts

4.6.a
Packet Pg. 173 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 95 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Grants and Contributions Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ ‐ $ 200,000 $ 208,203 $ 8,203 Other revenue ‐ ‐ 4,055 4,055 Total revenues ‐ 200,000 212,258 12,258 Excess (Deficiency) of Revenues
Over (Under) Expenditures ‐ 200,000 212,258 12,258 Other Financing Sources (Uses):

Transfers out ‐ (200,000) (82,021) 117,979 Net Change in Fund Balance ‐ ‐ 130,237 130,237 Fund Balance at Beginning of the Year (130,237) (130,237) ‐ (130,237) Fund Balance at End of the Year (130,237) $ $ ‐ (130,237) $ $ 130,237 Budget Amounts

4.6.a
Packet Pg. 174 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 96 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Public Art VALH MGP Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Charges for services $ ‐ $ ‐ $ 350,000 $ 350,000 Investment income ‐ ‐ 9,354 9,354 Total revenues ‐ ‐ 359,354 359,354 Expenditures:

Current:

Community services ‐ 15,000 15,000 ‐ Net Change in Fund Balance ‐ (15,000) 344,354 359,354 Fund Balance at Beginning of the Year ‐ ‐ ‐ ‐ Fund Balance at End of the Year $ ‐ $ (15,000) $ 344,354 $ 359,354 Budget Amounts

4.6.a
Packet Pg. 175 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 97 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual SLESF/COPS BRULTE Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Intergovernmental $      150,000 $    150,000 $     251,430 $        101,430 Investment income     ‐ ‐        2,829    2,829
Total revenues   150,000     150,000    254,259   104,259 Excess (Deficiency) of Revenues
Over (Under) Expenditures   150,000     150,000    254,259   104,259 Other Financing Sources (Uses):

Transfers out (150,000) (166,000) (166,000) ‐
Net Change in Fund Balance ‐ (16,000) 88,259 104,259 Fund Balance at Beginning of the Year ‐ ‐ ‐ ‐ Fund Balance at End of the Year $ ‐ $ (16,000) $ 88,259 $ 104,259 Budget Amounts

4.6.a
Packet Pg. 176 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 98 City of Laguna Hills, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Debt Service Fund
Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive/
Original Final Amounts (Negative)
Revenues:

Investment income $ ‐ $ ‐ $ 74,719 $ 74,719 Expenditures:

Debt service:

Interest and fiscal charges 46,423 46,423 46,423 ‐ Principal retirement 345,000 345,000 345,000 ‐ Total expenditures 391,423 391,423 391,423 ‐ Excess (Deficiency) of Revenues
Over (Under) Expenditures (391,423) (391,423) (316,704) 74,719 Other Financing Sources (Uses):

Transfers in 387,621 387,621 2,041 (385,580) Net Change in Fund Balance (3,802) (3,802) (314,663) (310,861) Fund Balance at Beginning of the Year 1,787,496 1,787,496 1,787,496 ‐ Fund Balance at End of the Year $ 1,783,694 $ 1,783,694 $ 1,472,833 $ (310,861) Budget Amounts

4.6.a
Packet Pg. 177 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Statistical Section

4.6.a
Packet Pg. 178 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) This pag
e intentionally left blank.

4.6.a
Packet Pg. 179 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 99 City of Laguna Hills, California
Statistical Section
Year Ended June 30, 2023
This part of the City of Laguna Hills’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well‐being have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes.

Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.

Operating Information
These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.

4.6.a
Packet Pg. 180 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) This pag
e intentionally left blank.

4.6.a
Packet Pg. 181 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2014 2015 2016 2017 2018
Governmental activities
Net Investment in capital assets $      84,465,323 $      84,623,408 $    83,320,937 $    82,980,468 $    81,972,798 Restricted            2,414,686            5,240,670         2,470,305         2,394,252         2,155,589 Unrestricted            5,751,121            1,789,992         4,916,994         3,315,387         2,956,001 Total government activities net position $      92,631,130 $      91,654,070 $    90,708,236 $    88,690,107 $    87,084,388 Business‐type activities
Net Investment in capital assets $        9,894,503 $        9,324,493 $      8,998,114 $      8,343,488 $      7,635,240 Restricted ‐ ‐ ‐ ‐ ‐
Unrestricted 47,801                (36,397)               68,288 117,338 236,196 Total business‐type activities net position $        9,942,304 $        9,288,096 $      9,066,402 $      8,460,826 $      7,871,436 Primary government
Net Investment in capital assets $      94,359,826 $      93,947,901 $    92,319,051 $    91,323,956 $    89,608,038 Restricted            2,414,686            5,240,670         2,470,305         2,394,252         2,155,589 Unrestricted            5,798,922            1,753,595         4,985,282         3,432,725         3,192,197 Total primary government net position $    102,573,434 $    100,942,166 $    99,774,638 $   97,150,933 $    94,955,824 Fiscal Year Ending
City of Laguna Hills
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
100

4.6.a
Packet Pg. 182
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2019 2020 2021 2022 2023
Governmental activities
Net Investment in capital assets $     79,706,238 $     80,312,979 $     78,878,248 $     79,981,695 $      76,838,788 Restricted          3,462,431          2,538,747          3,894,336          4,226,804            8,202,665 Unrestricted          4,583,713          4,177,487          4,089,857          8,289,453         17,861,468 Total government activities net position $     87,752,382 $     87,029,213 $     86,862,441 $     92,497,952 $    102,902,921 Business‐type activities
Net Investment in capital assets $       6,964,651 $       6,311,356 $       5,577,506 $       5,556,210 $        4,988,423 Restricted ‐ ‐ ‐ ‐ ‐
Unrestricted             227,320             178,595             218,820             212,173               217,172 Total business‐type activities net position $       7,191,971 $       6,489,951 $       5,796,326 $       5,768,383 $        5,205,595 Primary government
Net Investment in capital assets $     86,670,889 $     86,624,335 $     84,455,754 $     85,537,905 $      81,827,211 Restricted          3,462,431          2,538,747          3,894,336          4,226,804            8,202,665 Unrestricted          4,811,033          4,356,082          4,308,677          8,501,626         18,078,640 Total primary government net position $     94,944,353 $     93,519,164 $     92,658,767 $    98,266,335 $    108,108,516 City of Laguna Hills
Fiscal Year Ending
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
101

4.6.a
Packet Pg. 183
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2014 2015 2016 2017 2018
Expenses
Governmental activities:

General government $ 3,304,687 $ 3,088,372 $ 3,112,783 $ 4,226,233 $ 4,104,012 Public works 6,376,642 6,332,724 6,802,499 7,234,921 6,841,288 Community development 1,265,719 1,434,213 1,309,210 1,462,611 1,287,931 Community services 3,886,180 4,660,667 4,141,792 4,131,886 4,161,070 Public safety 6,837,050 7,162,514 6,929,025 8,167,361 8,032,660 Interest expense 530,039 479,589 431,264 376,993 323,513 Total governmental activities expenses 22,200,317 23,158,079 22,726,573 25,600,005 24,750,474 Business‐type activities:

Property leasing 1,278,434 1,204,437 1,222,043 1,255,765 1,247,849 Total business‐type activities expenses 1,278,434 1,204,437 1,222,043 1,255,765 1,247,849 Total primary government expenses $ 23,478,751 $ 24,362,516 $ 23,948,616 $ 26,855,770 $ 25,998,323 Program Revenues
Governmental activities:

Charges for Services:

General government $ ‐ $ ‐ $ ‐ $ ‐ $ ‐
Public works 106,633 136,037 205,446 196,054 189,662 Community development 799,316 1,050,127 881,286 894,150 988,719 Community services 608,877 775,330 780,519 756,089 821,388 Public safety 186,347 300,032 267,555 228,649 208,461 Operating Contributions 2,186,050 2,989,299 1,960,392 2,131,220 1,876,109 Capital Contributions 807,545 2,264,558 60,850 716,200 ‐ 4,694,768 7,515,383 4,156,048 4,922,362 4,084,339 Business‐type activities:

Charges for Services:

Property leasing             476,391             500,202             579,313             650,147             658,396 Operating grants and contributions ‐ ‐ ‐ ‐ ‐
Capital grants and contributions ‐ ‐ ‐ ‐ ‐
476,391             500,202             579,313             650,147             658,396 $       5,171,159 $       8,015,585 $       4,735,361 $       5,572,509 $       4,742,735 Net (expense)/revenue
Governmental activities $   (17,505,549) $   (15,642,696) $   (18,570,525) $   (20,677,643) $   (20,666,135) Business‐ type activities            (802,043)            (704,235)            (642,730)            (605,618)            (589,453) $   (18,307,592) $   (16,346,931) $   (19,213,255) $   (21,283,261) $   (21,255,588) City of Laguna Hills
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year Ending
Total primary government
program revenues
Total governmental activities
program revenues
Total business‐type activities
program revenues
102

4.6.a
Packet Pg. 184
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2014 2015 2016 2017 2018
General Revenues and Changes in Net Position
Governmental activities:

Taxes
Property taxes $ 8,826,271 $ 9,128,568 $ 9,660,614 $ 10,064,067 $ 10,481,864 Sales and use taxes 5,562,823 5,603,521 5,439,210 5,779,073 5,755,661 Motor vehicle in lieu taxes 14,344 13,856 12,506 13,745 16,604 Other State subvention 16,549 93,653 57,112 9,209 5,725 Franchise taxes 1,259,021 1,343,505 1,303,919 1,191,868 1,248,488 Transient occupancy taxes 1,203,422 1,285,455 1,406,823 1,437,420 1,381,719 Investment earnings 12,251 14,266 14,893 21,911 49,179 Miscellaneous revenue 29,706 56,542 150,614 142,221 121,176 Transfers (293,691) (50,000) (421,000) ‐ ‐ Total governmental activities 16,630,696 17,489,366 17,624,691 18,659,514 19,060,416 Business‐type activities:

Investment earnings 16 27 36 42 63
Transfers 293,691 50,000 421,000 ‐ ‐ Total business‐type activities 293,707 50,027 421,036 42 63 Total primary government $ 16,924,403 $ 17,539,393 $ 18,045,727 $ 18,659,556 $ 19,060,479 Changes in Net Position:

Governmental activities $ (874,853) $ 1,846,670 $ (945,834) $ (2,018,129) $ (1,605,719) Business‐type activities (508,336) (654,208) (221,694) (605,576) (589,390) Total primary government $ (1,383,189) $ 1,192,462 $ (1,167,528) $ (2,623,705) $ (2,195,109) (accrual basis of accounting)
Fiscal Year Ending
City of Laguna Hills
Changes in Net Position (Continued)
Last Ten Fiscal Years
103

4.6.a
Packet Pg. 185
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2019 2020 2021 2022 2023
Expenses
Governmental activities:

General government $ 3,467,852 $ 4,350,707 $ 4,468,341 $ 3,318,690 $ 4,577,936 Public works 6,433,542 6,783,242 6,727,008 6,849,279 7,674,208 Community development 1,385,455 1,656,277 2,270,417 1,762,606 1,405,880 Community services 4,079,412 3,781,731 3,371,755 4,027,705 2,572,809 Public safety 8,251,937 8,630,054 9,106,311 9,005,866 10,106,055 Interest expense 267,582 202,566 118,455 40,507 (12,748) Total governmental activities expenses 23,885,780 25,404,577 26,062,287 25,004,653 26,324,140 Business‐type activities:

Property leasing 1,273,554 1,299,630 1,312,224 1,396,618 1,417,830 Total business‐type activities expenses 1,273,554 1,299,630 1,312,224 1,396,618 1,417,830 Total primary government expenses $ 25,159,334 $ 26,704,207 $ 27,374,511 $ 26,401,271 $ 27,741,970 Program Revenues
Governmental activities:

Charges for Services:

General government $ ‐ $ ‐ $ ‐ $ ‐ $ 36,804
Public works 253,438 738,335 1,480,182 787,032 600,449 Community development 1,010,326 1,182,430 1,009,012 1,042,546 2,890,596 Community services 777,605 345,328 183,008 498,155 2,657,311 Public safety 219,727 175,661 146,395 173,454 224,731 Operating Contributions 2,516,513 2,555,054 3,170,212 6,293,799 4,601,680 Capital Contributions ‐ 206,675 ‐ 239,224 2,507,586 4,777,609 5,203,483 5,988,809 9,034,210 13,519,157 Business‐type activities:

Charges for Services:

Property leasing             594,026             597,525             618,552             705,583             754,913 Operating grants and contributions ‐ ‐ ‐ ‐ ‐
Capital grants and contributions ‐ ‐ ‐ ‐ ‐
594,026             597,525             618,552             705,583             754,913 $       5,371,635 $       5,801,008 $       6,607,361 $       9,739,793 $    14,274,070 Net (expense)/revenue
Governmental activities $   (19,108,171) $   (20,201,094) $   (20,073,478) $   (15,970,443) $   (12,804,983) Business‐ type activities            (679,528)            (702,105)            (693,672)            (691,035)            (662,917) $   (19,787,699) $   (20,903,199) $   (20,767,150) $   (16,661,478) $   (13,467,900) City of Laguna Hills
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year Ending
Total primary government
program revenues
Total governmental activities
program revenues
Total business‐type activities
program revenues
104

4.6.a
Packet Pg. 186
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2019 2020 2021 2022 2023
General Revenues and Changes in Net Position
Governmental activities:

Taxes
Property taxes $ 10,981,130 $ 11,314,045 $ 11,930,666 $ 12,340,524 $ 13,069,248 Sales and use taxes 5,966,524 5,372,149 5,825,883 6,940,812 6,930,366 Motor vehicle in lieu taxes 15,273 24,988 23,109 35,897 32,177 Other State subvention 22,529 10,613 9,895 ‐ 80,839 Franchise taxes 1,265,411 1,198,008 1,218,098 1,251,870 1,326,571 Transient occupancy taxes 1,311,213 1,025,047 678,706 1,021,089 1,122,643 Investment earnings 99,204 112,250 2,988 (117,321) 636,875 Miscellaneous revenue 114,881 420,825 217,361 133,083 111,233 Transfers ‐ ‐ ‐ ‐ (100,000)
Total governmental activities 19,776,165 19,477,925 19,906,706 21,605,954 23,209,952 Business‐type activities:

Investment earnings 63 85 47 76 129
Transfers ‐ ‐ ‐ ‐ 100,000
Total business‐type activities 63 85 47 76 100,129 Total primary government $ 19,776,228 $ 19,478,010 $ 19,906,753 $ 21,606,030 $ 23,310,081 Changes in Net Position:

Governmental activities $ 667,994 $ (723,169) $ (166,772) $ 5,635,511 $ 10,404,969 Business‐type activities (679,465) (702,020) (693,625) (690,959) (562,788) Total primary government $ (11,471) $ (1,425,189) $ (860,397) $ 4,944,552 $ 9,842,181 (accrual basis of accounting)
Fiscal Year Ending
City of Laguna Hills
Changes in Net Position (Continued)
Last Ten Fiscal Years
105

4.6.a
Packet Pg. 187
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2014 8,826,271              5,562,823             14,344             16,549       1,259,021       1,203,422     16,882,430 2015 9,128,568              5,603,521             13,856             93,653       1,343,505       1,285,455     17,468,558 2016 9,660,614              5,439,210             12,506             57,112       1,303,919       1,406,823     17,880,184 2017 10,064,067            5,779,073             13,745               9,209       1,191,868       1,437,420     18,495,382 2018 10,481,864            5,755,661             16,604               5,725       1,248,488       1,381,719     18,890,061 2019 10,981,130            5,966,524             15,273             22,529       1,265,411       1,311,213     19,562,080 2020 11,314,045            5,372,149             24,988             10,613       1,198,008       1,025,047     18,944,850 2021 11,930,666            5,825,883             23,109               9,895       1,218,098           678,706     19,686,357 2022     12,340,524       6,940,812             35,897 ‐       1,251,870       1,021,089     21,590,192 2023 13,069,248            6,930,366             32,177             80,839       1,326,571       1,122,643     22,561,844 Transient
Occupancy
Tax  Total
City of Laguna Hills
Governmental Activities ‐ Tax Revenues By Source
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
Ending  Property Tax
Sales & Use
Tax
Motor
Vehicle in
Lieu Tax
Other State
Subvention  Franchise Tax
106

4.6.a
Packet Pg. 188
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2014 2015 2016 2017 2018
General Fund
Nonspendable $          416,994 $          318,769 $          312,137 $            81,520 $            78,971 Restricted ‐ 88,990 ‐ ‐ ‐
Committed ‐ ‐ ‐ ‐ ‐
Assigned          1,726,228          1,230,959          1,059,959             720,659             871,931 Unassigned          4,184,661          5,078,583          6,727,197          6,029,507          6,373,541 Total General Fund $       6,327,883 $       6,717,301 $       8,099,293 $       6,831,686 $       7,324,443 All other governmental funds
Nonspendable ‐ ‐ ‐ ‐ ‐
Restricted          4,222,459          5,151,680          4,276,934          4,209,039         3,983,335 Committed ‐ ‐ ‐ ‐ ‐
Assigned ‐ ‐ ‐ ‐ ‐
Unassigned            (322,781)            (229,971)            (227,254) ‐ ‐ Total all other governmental funds $       3,899,678 $       4,921,709 $       4,049,680 $       4,209,039 $       3,983,335 Fiscal Year Ending
City of Laguna Hills
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
107

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Packet Pg. 189
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2019 2020 2021 2022 2023
General Fund
Nonspendable $            99,169 $            69,834 $            91,384 $          128,954 $          105,889 Restricted ‐ ‐ ‐ ‐ ‐
Committed ‐ ‐ ‐ ‐ ‐
Assigned          1,145,659             795,659             910,659             769,926             847,881 Unassigned          7,161,146          7,487,247          7,824,536        12,895,569        20,711,877 Total General Fund $       8,405,974 $       8,352,740 $       8,826,579 $     13,794,449 $     21,665,647 All other governmental funds
Nonspendable ‐ ‐ ‐ ‐ ‐
Restricted          5,291,312          4,364,330          5,703,771          4,226,804         8,202,665 Committed ‐ ‐ ‐ ‐ ‐
Assigned ‐ ‐ ‐ ‐ ‐
Unassigned ‐            (164,472) ‐            (165,237) ‐ Total all other governmental funds $       5,291,312 $       4,199,858 $       5,703,771 $       4,061,567 $       8,202,665 Fiscal Year Ending
City of Laguna Hills
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
108

4.6.a
Packet Pg. 190
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2014 2015 2016 2017 2018
Revenues:

Taxes $ 11,308,714 $ 11,777,528 $ 12,393,356 $ 12,695,355 $ 13,114,068 Licenses and permits 778,208 3,195,756 959,138 1,022,542 932,640 Intergovernmental 8,864,729 8,765,516 7,897,817 8,506,103 7,602,950 Charges for current services 931,909 944,054 1,156,880 1,068,521 1,159,437 Fines and forfeitures 186,347 300,032 267,555 228,649 208,461 Investment income 21,608 24,209 35,970 65,691 109,302 Other revenues ‐ ‐ ‐ ‐ ‐
Total revenues 22,091,515 25,007,095 22,710,716 23,586,861 23,126,858 Expenditures:

Current:

General government 3,168,265 3,271,039 3,128,699 3,599,531 3,876,923 Public works 4,399,704 4,299,138 4,273,572 4,848,571 4,276,773 Community development 1,261,715 1,433,383 1,308,380 1,461,781 1,287,101 Community services 1,860,866 2,608,281 2,070,952 2,101,883 2,131,638 Public safety 6,826,303 7,153,841 6,917,275 8,149,762 8,025,961 Capital outlay 2,965,511 2,976,435 2,277,446 2,777,691 2,151,578 Debt Service:

Interest 601,542 553,529 503,429 451,427 397,428 Principal retirement 1,205,000 1,250,000 1,300,000 1,352,353 1,423,396 Total expenditures 22,288,906 23,545,646 21,779,753 24,742,999 23,570,798 Excess (deficiency) of revenues
over expenditures (197,391) 1,461,449 930,963 (1,156,138) (443,940) Other financing sources (uses):

Capital lease proceeds ‐ ‐ ‐ 47,890 710,993 Transfers in 7,214,336 8,059,715 7,006,357 7,582,790 5,207,406 Transfers out (7,508,027) (8,109,715) (7,427,357) (7,582,790) (5,207,406) Total other financing sources (uses) (293,691) (50,000) (421,000) 47,890 710,993 Net change in fund balances $ (491,082) $ 1,411,449 $ 509,963 $ (1,108,248) $ 267,053 Debt service as a percentage of
noncapital expenditures 8.55% 8.60% 8.76% 8.00% 8.21%
(modified accrual basis of accounting)
Fiscal Year Ending
City of Laguna Hills
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
109

4.6.a
Packet Pg. 191
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2019 2020 2021 2022 2023
Revenues:

Taxes $ 13,559,754 $ 13,539,101 $ 13,829,470 $ 21,609,138 $ 22,628,828 Licenses and permits 981,873 1,775,501 2,432,782 1,754,078 1,453,067 Intergovernmental 8,463,884 8,264,831 8,920,379 6,140,282 7,199,902 Charges for current services 1,152,319 637,373 584,889 894,419 4,832,814 Fines and forfeitures 219,727 175,661 146,395 173,454 224,731 Investment income 200,303 230,657 14,567 (121,953) 745,205 Other revenues ‐ ‐ ‐ ‐ 4,055
Total revenues 24,577,860 24,623,124 25,928,482 30,449,418 37,088,602 Expenditures:

Current:

General government 3,856,802 3,801,648 3,721,950 4,070,347 4,341,841 Public works 4,406,628 4,781,981 4,656,267 5,094,782 5,178,852 Community development 1,384,625 1,655,447 2,269,587 1,761,776 1,405,880 Community services 2,050,652 1,754,112 1,310,727 1,968,914 2,333,063 Public safety 8,243,746 8,621,863 9,098,120 8,992,127 10,096,445 Capital outlay 356,354 3,251,173 1,024,620 3,343,324 1,136,500 Debt Service:

Interest 342,922 284,921 208,924 129,922 46,423 Principal retirement 1,546,623 1,616,667 1,660,535 1,762,560 437,302 Total expenditures 22,188,352 25,767,812 23,950,730 27,123,752 24,976,306 Excess (deficiency) of revenues
over expenditures 2,389,508 (1,144,688) 1,977,752 3,325,666 12,112,296 Other financing sources (uses):

Capital lease proceeds ‐ ‐ ‐ ‐ ‐
Transfers in 2,992,799 8,539,794 3,770,978 12,861,293 5,308,736 Transfers out (2,992,799) (8,539,794) (3,770,978) (12,861,293) (5,408,736) Total other financing sources (uses) ‐ ‐ ‐ ‐ (100,000) Net change in fund balances $ 2,389,508 $ (1,144,688) $ 1,977,752 $ 3,325,666 $ 12,012,296 Debt service as a percentage of
noncapital expenditures 8.57% 8.38% 8.05% 7.96% 1.97%
(modified accrual basis of accounting)
Fiscal Year Ending
City of Laguna Hills
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
110

4.6.a
Packet Pg. 192
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Fiscal Year
Ending
Secured
Property
Unsecured
Property
Less Tax‐
Exempt
Property
Taxable
Assessed
Value
Total Direct
Tax Rate (1)
Estimated
Actual
Taxable Value
(2)
Factor of
Taxable
Assessed
Value
Assessed
Value as a
Percentage of
Actual Value
2014 5,509,351 146,695 35,252 5,656,046 .05371 5,656,046 1.000000 100.00% 2015 5,809,642 148,567 35,410 5,958,209 .05371 5,958,209 1.000000 100.00% 2016 6,236,428 183,676 165,185 6,254,919 .05371 8,159,912 1.304559 76.65% 2017 6,499,868 187,553 218,920 6,468,501 .05371 9,167,561 1.417262 70.56% 2018 6,728,482 188,841 209,680 6,707,643 .05371 9,373,474 1.397432 71.56% 2019 7,089,277 245,352 212,722 7,121,907 .05371 9,878,938 1.387120 72.09% 2020 7,353,496 211,472 242,642 7,322,326 .05371 9,834,824 1.343128 74.45% 2021 7,623,019 213,636 219,789 7,616,866 .05371 10,190,719 1.337915 74.74% 2022 7,889,791 210,848 167,326 7,933,313 .05371 11,575,188 1.459061 68.54% 2023 8,267,342 194,441 238,422 8,223,361 .05371 13,379,293 1.626986 61.46% (2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values.

Table has been reformatted to comply with GASB No. 44 and include estimated actual value. (1.) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 31‐001.

Source: Orange County Assessor data, Avenu Insights & Analytics Source: 2014‐2015 prior ACFR
City of Laguna Hills
Assessed Value and Estimated Actual Value of Taxable Property, Citywide Last Ten Fiscal Years (in thousands)
111

4.6.a
Packet Pg. 193
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Category 2016 2017 2018 2019 2020
Residential $ 4,947,347 $ 5,170,783 $ 5,398,624 $ 5,669,336 $ 5,889,434 Commercial 1,072,613 1,107,991 1,100,803 1,180,147 1,217,600 Industrial 216,447 221,072 229,033 239,771 246,439 Rural 22 22 23 23 23
Gross Secured Value 6,236,429 6,499,868 6,728,482 7,089,277 7,353,496 Unsecured Value 183,676 187,553 188,841 245,352 211,472 Less: Exemptions 165,185 218,920 209,680 212,722 242,642 Net Taxable Value 6,254,920 $ $ 6,468,501 $ 6,707,643 $ 7,121,907 $ 7,322,326 Source: Orange County Assessor Data, Avenu Insights & Analytics Note: Data only available for eight years.

Fiscal Year Ending
City of Laguna Hills
Assessed Value of Property by Use Code, Citywide
Last Eight Fiscal Years (In Thousands)
112

4.6.a
Packet Pg. 194
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Category 2021 2022 2023
Residential $ 6,106,523 $ 6,288,266 $ 6,595,302 Commercial 1,264,734 1,345,541 1,405,711 Industrial 251,738 255,960 266,304 Rural 24 24 25
Gross Secured Value 7,623,019 7,889,791 8,267,342 Unsecured Value 213,636 210,848 194,441 Less: Exemptions 219,789 167,326 238,422 Net Taxable Value 7,616,866 $ $ 7,933,313 $ 8,223,361 Source: Orange County Assessor Data, Avenu Insights & Analytics Note: Data only available for eight years.

Fiscal Year Ending
City of Laguna Hills
Assessed Value of Property by Use Code, Citywide
Last Eight Fiscal Years (In Thousands)
113

4.6.a
Packet Pg. 195 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2014 2015 2016 2017 2018
Overlapping Basic Rate 1.000000 1.000000 1.000000 1.000000 1.000000 Capistrano Union 0.009720 0.009000 0.008450 0.008430 0.008000 Metropolitan Water District 0.003500 0.003500 0.003500 0.003500 0.003500 Moulton Niguel Water District 0.129770 ‐ 0.086000 ‐ ‐ Saddleback Valley Unified 0.032070 0.028060 ‐ ‐ ‐ Total 1.175060 1.126560 1.011950 1.011930 1.011500 City Direct Rate:

City Share of 1% Levy Per Prop 13 0.053710 0.053710 0.053710 0.053710 0.053710 Source: Orange County Assessor data, Avenu Insights & Analytics TRA 31‐000 is represented.

Fiscal Year Ending
City of Laguna Hills
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
114

4.6.a
Packet Pg. 196
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2019 2020 2021 2022 2023
Overlapping Basic Rate 1.000000 1.000000 1.000000 1.000000 1.000000 Capistrano Union 0.007860 0.007450 0.007560 0.007270 0.006910 Metropolitan Water District 0.003500 0.003500 0.003500 0.003500 0.003500 Moulton Niguel Water District ‐ ‐ ‐ ‐ ‐
Saddleback Valley Unified ‐ ‐ ‐ ‐ ‐
Total 1.011360 1.010950 1.011060 1.010770 1.010410 City Direct Rate:

City Share of 1% Levy Per Prop 13 0.053710 0.053710 0.053710 0.053710 0.053710 Source: Orange County Assessor data, Avenu Insights & Analytics TRA 31‐000 is represented.

Fiscal Year Ending
City of Laguna Hills
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
115

4.6.a
Packet Pg. 197
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Taxpayer Taxable Value ($)
Percent of Total
City Taxable Value
(%) Taxable Value ($)
Percent of Total
City Taxable Value
(%)
MGP Fund X Laguna Hills LLC           136,581,255 1.66% Laguna Hills Investment Company           107,132,427 1.30% 22,996,866              0.41% PMI Prado LLC           101,670,944 1.24%
Acquiport Three Corp             90,545,719 1.10%             76,893,378 1.37% Juniper SB MOB LLC             82,477,549 1.00%
Lakehills CM‐CG LLC             51,313,868 0.62%
ROIC California LLC             49,321,294 0.60%
Vision Star II LLC             43,800,868 0.53%
TM Medical Center LLC             43,292,120 0.53%
Pacifica Laguna Hills LLC             39,942,068 0.49%
La Paz Office Plaza LLC             38,923,349 0.47%             31,605,792 0.56% Juniper Laguna MOB LLC             31,961,700 0.39%
AG‐LO Oakbrook Owner LLC             31,345,453 0.38%
Spectrum Property Owner LLC             30,148,906 0.37% Memorial Health Services             27,202,263 0.33%             24,945,924 0.44% EQR‐Villa Solana Vistas Inc             26,083,395 0.32%             22,457,100 0.40% Juniper Sb Professional LLC             25,092,000 0.31% Laguna Hills Estate LLC             24,739,921 0.30%             18,225,872 0.32% Sylmar Apartments LLC             22,991,436 0.28%             19,791,214 0.35% Calle De La Louisa Holdings LLC             20,353,702 0.25% Mouldy LLC             17,353,988 0.21%             14,849,984 0.26% K & M Royal Group LLC             16,993,333 0.21%             14,609,134 0.26% Force‐Moulton Office LLC             16,568,763 0.20%
Laguna Hills Real Estate Partnership LP             16,154,462 0.20% Ashley Real Estate LLC             16,031,215 0.19%
Shopping Center Associates           133,125,192 2.37%
TGM Prado LLC             57,012,916 1.02%
Sptmrt Properties Trust             40,624,282 0.72%
LHT Saddleback LLC             37,070,166 0.66%
Lakehills At Laguna LLC             35,373,600 0.63%
Moulton Plaza LLC             23,500,978 0.42%
Muller Taj             19,402,158 0.35%
Columbia California Carlota             19,039,320 0.34% Colton David A             18,336,583 0.33%
Westport Moulton Parkway Ltd.             15,866,100 0.28% Realty Assoc Fund VIII             15,316,057 0.27%
Universal Properties LH Five             14,196,258 0.25% Alicia Office Park Assoc LLC             14,040,198 0.25% Laguna Hills Business Park             13,921,436 0.25% Ashley Furniture Industries In             13,815,214 0.25% Mission Hills Investment Co             13,783,728 0.25% Total Top 25 Taxpayers 1,108,021,998 13.47% 730,799,450 13.01% Total Taxable Value 8,223,359,714 5,615,202,542
Source:  Orange County Assessor data, Avenu Insights & Analytics 2022‐23 2013‐14
City of Laguna Hills
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
116

4.6.a
Packet Pg. 198 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Fiscal Year
Ending Secured Unsecured
Taxes Levied
for the Fiscal
Year
Amount
Collected % of Levy
Other
Collections Amount % of Levy
2014 $ 5,732 $ 261 $ 5,992 $ 5,885 98.2% 62 $ $ 5,947 99% 2015 6,051 275 6,327 6,180 97.7% 52 6,231 98% 2016 6,375 232 6,607 6,456 97.7% 72 6,528 99% 2017 6,634 300 6,934 6,733 97.1% 69 6,802 98% 2018 6,901 230 7,131 7,004 98.2% 66 7,070 99% 2019 7,288 235 7,523 7,376 98.0% 66 7,442 99% 2020 7,529 242 7,771 7,624 98.1% 73 7,697 99% 2021 7,844 256 8,100 7,958 98.3% 90 8,048 99% 2022 8,168 281 8,449 8,150 96.5% 77 8,227 97% 2023 8,504 260 8,764 8,610 98.2% 87 8,697 99% Source: County Auditor‐Controller, Avenu Insights & AnalyƟcs City of Laguna Hills
Property Tax Levy and Collections
Last Ten Fiscal Years
Collected within the Fiscal
Year of the Levy Total Collections to Date
117

4.6.a
Packet Pg. 199
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Taxpayer Business Type Taxpayer Business Type
Ashley Furniture Homestore Furniture/Appliance 7‐Eleven Food Stores Food Markets BJ's Restaurant & Brewhouse Restaurants A & R Floor Covering Accesrs‐Sup. Furniture/Appliance Chevron Service Stations Service Stations Alicia‐Laguna Service Stations Chick‐Fil‐A Restaurants Ashley Furniture Homestore Furniture/Appliance Circle K Food Stores Food Markets Big Lots Department Stores Cynergy Professional Systems Electronic Equipment BJ's Restaurant & Brewhouse Restaurants Decisionpoint Systems Ca Office Equipment Chevron Service Stations Service Stations Dick's Sporting Goods Recreation Products David J.Phillips Buick‐Pntc Mazda Auto Sales ‐ New Howard'S Appliances Furniture/Appliance Dick's Sporting Goods Recreation Products In‐N‐Out Burgers Restaurants Howard's Appliances Furniture/Appliance Jackson Energy Co Energy Sales In‐N‐Out Burgers Restaurants Jeromes Furniture Warehouse Furniture/Appliance J C Penney Company Department Stores John Deere Landscapes Florist/Nursery King's Seafood Company Restaurants King'S Seafood Company Restaurants Macy's Department Store Department Stores Laguna Hills Auto Spa Service Stations Marshall's Stores Apparel Stores Marshall's Stores Apparel Stores Material Supply Incorporated Bldg.Matls‐Whsle Material Supply Incorporated Bldg.Matls‐Whsle Nordstrom Department Store Department Stores Nordstrom Department Store Department Stores Petrolink Superior Service Stations Pritchard Supply Bldg.Matls‐Whsle Ralph's Grocery Company Food Markets Raising Cane's Chicken Fingers Restaurants Sears Roebuck & Company Department Stores Sidepat Office Equipment Shell Service Stations Service Stations Snap One Office Equipment Sit 'N Sleep‐Laguna Hills Furniture/Appliance Total Wine & More Liquor Stores Tesoro Service Stations United Pacific Service Stations Total Wine & More Liquor Stores Vertiv Corporation Electronic Equipment Western Fuel Group Service Stations Source: Avenu Insights & Analytics
2022‐23 2013‐14
City of Laguna Hills
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
118

4.6.a
Packet Pg. 200 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Fiscal Year
Ending
Certificates of
Participation
Direct
Borrowings (b)
Total Direct
Debt
Debt Per Capita
(a)
Personal
Income
Percentage of
Personal
Income
2014 13,437 ‐ 13,437 435.45           1,336,181 1.01%
2015 12,106 ‐ 12,106 394.58           1,373,184 0.88%
2016 10,726 ‐ 10,726 340.02           1,479,761 0.72%
2017 9,295 46 9,341 293.57           1,587,577 0.59%
2018 7,825 723 8,548 270.74           1,661,606 0.51%
2019 6,294 627 6,921 219.65           1,724,666 0.40%
2020 4,694 530 5,224 168.11           1,835,890 0.28%
2021 3,033 437 3,470 112.85           1,935,992 0.18%
2022 1,283 345 1,628 53.33           2,026,083 0.08%
2023 857 252 1,109 36.33           2,107,165 0.05%
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Source: Income Data is provided by the United States Census Data and is adjusted for inflation. (a) Population data can be found in the Schedule of Demographic and Economic Statistics (b) On‐bill financing program with Southern California Edison and San Diego Gas & Electric, for the installation of energy efficient LED street lighting thoughout the City, beginning in FY 2016‐17.

Governmental Activities
City of Laguna Hills
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amounts) 119

4.6.a
Packet Pg. 201 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of
General Less: Amounts Estimated
Fiscal Obligation Available in Debt Actual Taxable Per
Year Bonds Service Fund Value of Capita
Property
Note: There was no general bonded debt outstanding for the last ten fiscal years. 120

4.6.a
Packet Pg. 202 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Debt
Outstanding
Estimated
Percentage
Applicable (a)
Estimated
Share of
Overlapping
Debt
OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District 19,215,000 0.227% 43,618 Saddleback Valley Unified School District 83,545,000 16.413% 13,712,241 Capistrano Unified School District Facilities Improvement District No. 1 10,033,567 0.024% 2,408 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT: $ 13,758,267

DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT
Orange County General Fund Obligations 451,165,000 1.140% 5,143,281 Orange County Board of Education General Fund Obligations 10,860,000 1.140% 123,804 Capistrano Unified School District Certificates of Participation 21,360,000 0.017% 3,631 Moulton Niguel Water District Certificates of Participation 50,905,000 13.259% 6,749,494 SUBTOTAL OVERLAPPING GENERAL FUND OBLIGATION DEBT: $ 12,020,210 City of Laguna Hills Certificates of Participation, Direct Debt 857,396 100.000% 857,396 City of Laguna Hills Direct Borrowings, Direct Debt 252,428 100.000% 252,428 SUBTOTAL DIRECT GENERAL FUND OBLIGATION DEBT: $ 1,109,824 TOTAL DIRECT & OVERLAPPING GENERAL FUND OBLIGATION DEBT: $ 13,130,034 OVERLAPPING TAX INCREMENT DEBT (Successor Agency) 4,755,000 2.470% 117,449 GROSS COMBINED TOTAL DEBT $ 27,005,749 (b)
(a) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (b)
Source: Avenu Insights & Analytics
City of Laguna Hills
Direct and Overlapping Governmental Activities Debt
As of June 30, 2023
Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non‐bonded capital lease obligations. 121

4.6.a
Packet Pg. 203 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2014 2015 2016 2017 2018
Debt limit $ 853,695 $ 899,043 $ 963,016 $ 1,003,113 $ 1,037,598 Total net debt applicable to limit 12,585 11,335 10,035 9,295 7,825 Legal debt margin $ 841,110 $ 841,110 $ 952,981 $ 993,818 $ 1,029,773 Total net debt applicable to limit, as
a percentage of debt limit 1.47% 1.26% 1.04% 0.93% 0.75% Fiscal Year Ending
City of Laguna Hills
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
122

4.6.a
Packet Pg. 204
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2019 2020 2021 2022 2023
Debt limit $       1,100,194 $       1,134,745 $       1,175,498 $       1,215,096 $       1,269,267 Total net debt applicable to limit 6,294 4,694 3,033 1,283 730 Legal debt margin $       1,093,901 $       1,130,051 $       1,172,465 $       1,213,813 $       1,268,537 Total net debt applicable to limit, as
a percentage of debt limit 0.57% 0.41% 0.26% 0.11% 0.06% Legal Debt Margin Calculation for Fiscal Year 2022‐23
Assessed value           8,223,361
Add back: exempt real property              238,422
Total assessed value           8,461,783
Debt limit (15% of total assessed value)          1,269,267 Debt applicable to limit:

Certificates of Participation 730
Total net debt applicable to limit 730
Legal debt margin $ 1,268,537
Note: Under state finance law, the City of Laguna Hills' outstanding general obligation debt should not exceed 15% of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

Fiscal Year Ending
City of Laguna Hills
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
123

4.6.a
Packet Pg. 205
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Note: There was no debt covenants that required pledged‐revenue coverage for the last ten fiscal years.

City of Laguna Hills
Pledged‐Revenue Coverage
Last Ten Fiscal Years
124

4.6.a
Packet Pg. 206 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Calendar
Year Population (1)
Personal
Income (In
Thousands)
Per Capita Personal
Income (2)
City
Unemployment
Rate (3)
Median
Age (4)
% of Population with
High School Diploma
(5)
% of Population
With Bachelor's
Degree (5)
2013 30,703 1,320,001 42,778 4.2% 41.5 91.7% 42.8% 2014 30,857 1,336,181 43,315 5.0% 41.8 91.6% 45.3% 2015 30,681 1,373,184 44,757 4.1% 41.7 91.2% 44.8% 2016 31,544 1,479,761 46,911 3.7% 41.8 91.5% 45.6% 2017 31,818 1,587,577 49,896 2.6% 43.0 91.3% 46.7% 2018 31,572 1,661,606 52,629 2.2% 41.4 92.1% 49.1% 2019 31,508 1,724,666 54,737 12.2% 42.5 92.3% 49.4% 2020 31,073 1,835,890 59,083 7.4% 42.8 92.2% 50.5% 2021 30,750 2,086,807 67,864 2.2% 41.8 92.8% 50.4% 2022 30,525 2,416,252 79,157 2.9% 43.0 93.3% 80.8%

5.) School diploma and Bachelor's degree is provided by the United States Census data.

Source: Avenu Insights & Analytics
City of Laguna Hills
Demographic and Economic Statistics
Last Ten Fiscal Years

4.) Median Age is provided by the United States Census data estimation table.

3.) Unemployment and Total Employment Data are provided by the EDD's Bureau of Labor Statistics Department.

2.) Income Data is provided by the United States Census Data and is adjusted for inflation.

1.) Population Projections are provided by the California Department of Finance Projections.

Source: 2013‐2015 prior ACFR
125

4.6.a
Packet Pg. 207 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) Business Name
Number of
Employees
Percent of Total
Employment
(%)
Number of
Employees
Percent of Total
Employment
(%)
MemorialCare Saddleback Medical Center 1,892 11.13% 1,020 5.93% Saddleback Valley Unified School District 213 1.25%
Laguna Hills Health and Rehabiliation Center 206 1.21%
Moulton Niguel Water District 180 1.06%
BJ's Restaurant & Brewhouse 160 0.94%
United States Postal Service 131 0.77%
Orange Coast Women's Medical Group 120 0.71%
MemorialCare Home Health 115 0.68%
The Wellington 93 0.55%
Villa Valencia Healthcare Center 90 0.53%
Professional Community Management 350 2.03%
Veteran's Affairs, U.S. Department 260 1.51%
Care Plus Home Care, Inc. 250 1.45%
Allied Business Schools, Inc. 235 1.37%
Total Top Employees 3,200 18.82% 2,115 12.29%
Total City Employment (1) 17,000
Results based on direct correspondence with city’s local businesses. (1) Total City Labor Force provided by EDD Labor Force Data as of June 30th.

City of Laguna Hills
Principal Employers
Last Fiscal Year and Nine Years Ago
Source: 2014 ACFR lists Top 5 Employers only
2023
Source: Avenu Insights & Analytics
2014
126

4.6.a
Packet Pg. 208
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Government 11.75 10.99 10.99 10.49 9.74 9.50 9.50 9.50 9.50 9.00 Non‐Departmental 1.25 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Public Works 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Community Development 7.85 8.23 8.23 8.23 8.00 7.10 7.10 6.50 6.50 6.87 Community Services (a) 15.75 15.40 15.40 15.40 14.65 14.50 14.50 14.25 14.25 16.00 Total 41.60 40.62 40.62 40.12 38.39 37.10 37.10 36.25 36.25 37.87 (a) Community Services count includes number of full‐time equivalent employees furloughed due to the COVID‐19 pandemic due from cancelled programs and facility closures.

Source: City of Laguna Hills' Biennial Budget, includes vacant positions Fiscal Year Ending
City of Laguna Hills
Full‐time Equivalent Personnel Allocation by Function
Last Ten Fiscal Years
Function
127

4.6.a
Packet Pg. 209 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Police (b)
Physical arrests         458         534         284         293         281         240         246         289         258         211 Parking violations     1,407     1,981     3,257     3,406     2,487     2,381     1,876     1,267     1,841         908 Traffic violations     2,070     3,041     3,187     2,669     1,512     1,136         722         842         900     3,113 Fire (c)
Number of calls answered     2,584     2,675     2,887     3,078     3,203     3,303     3,122     3,263     3,842     3,878 Highways and Streets (d)
Sidewalk replacement (sq. ft.)     3,519     7,250         940     7,012     1,328     1,790         790     2,961     1,847         742 Curb & gutter replacement (linear ft.)          ‐          478         211         523           28           85           93           20           66           22 Asphalt concrete placed (tons)     7,857   16,276         134   10,536     1,215         174         266           18     6,059           40 Street sweeping debris collected (tons)         293         265         229         219         217         227         206         244         226         329 New sign installations           65           23         155           12           31             2           13           18           11           27 Sign Replacements         278         380         297         312         196           55         220         287         187         309 Trees trimmed     1,185         792         821     1,396     1,347     1,407     1,639     1,592     1,546     1,461 Trees removed         179         461         152         263         286         183         206         211         200         164 Trees planted           44           38           43         118         120         109         139         122         123         199 Sanitation (a)
Refuse collected (tons/day)           45           43           47           49           48           45           55           69           56           54 Recyclables collected (tons/day)           46           49           50           47           46           46           43           29           40           45 Waste Stream(a)
Refuse collected (tons)   16,416   15,707   17,197   17,966   17,520   16,576   20,016   25,026   20,539   19,854 Recyclables collected (tons)   16,964   17,728   18,150   17,058   16,827   16,879   15,611   10,717   14,402   16,606 Culture and Recreation (e)
Program participants     5,783     5,637     6,152     5,686     5,993     4,456     2,919         341     2,572         990 Athletic permits           45           41           42           48           41           43           30             6           26           32 (a) CR&R Monthly Tonnage Report
(b) Orange County Sheriff's Daily Booking Log; Monthly Traffic Statistics; Data Ticket Citation Report (c) Orange County Fire Authority ‐ Annual Comprehensive Financial Report (d) City of Laguna Hills, Public Works Department
(e) City of Laguna Hills, Community Services Department City of Laguna Hills
Operating Indicators by Function
Last Ten Fiscal Years
Function
Fiscal Year Ending
128

4.6.a
Packet Pg. 210
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Highways and streets
Streets (miles) 83 83 83 83 83 83 83 83 83 83
Traffic signals 46 47 47 47 48 48 48 49 49 49
Culture and recreation
Parks acreage 83 83 83 83 83 83 83 83 83 83
Parks 15 15 15 15 15 15 15 15 15 15
Community Centers 1111111111
Civic Center 1111111111
Source: Various City Departments
City of Laguna Hills
Capital Assets Statistics by Function
Last Ten Fiscal Years
Function
Fiscal Year Ending
129

4.6.a
Packet Pg. 211
Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) CITY OF LAGUNA HILLS

AT A GLANCE
GENERAL INFORMATION
The City of Laguna Hills, located in South Orange County, has approximately 6.6 square miles of land in its corporate boundary and is now home to 30,525 people. The majority of the area in the City has a distinctive residential character. Yet, the City has a commercial base in its northern part. This area, or “urban village”, is anchored by upcoming development of The Village at Laguna Hills, the Oakbrook Village Retail Center, and Saddleback Memorial Hospital. It includes retail, restaurant, professional office, and medical related building space. When the City annexed the “North Laguna Hills” area in July of 1996, the City acquired 1.2 square miles of primarily light industrial, professional office, specialty retail, hotel, and residential uses. This annexed area contains a furniture row, office headquarters, and the only light industrial/manufacturing establishments in the City. In September of 2000, the City grew by another 150 acres as a result of the annexation of residential properties identified as West Laguna Hills.

HISTORY
Laguna Hills is built on one of the major land grants developed during the rancho area. Following Mexico’s independence from Spain in 1821, those who had served in the government or who had friends in authority were given vast lands for cattle grazing. Rancho Lomas de Santiago, Rancho San Joaquin, and Rancho Niguel covered much of the western portion of the Saddleback Valley. Don Juan Avila was granted the 13,000‐acre Rancho Niguel on which Laguna Hills is located.

In 1874, Lewis Moulton purchased Rancho Niguel from Don Juan Avila and increased the original grant to 22,000 acres. Moulton and his partner, Jean Piedrea Daguerre, used the ranch to raise sheep and cattle. The Moulton ranch was eventually subdivided in the early 1960s, part of which is recognized as Laguna Hills.

Incorporation efforts began in 1987 and on March 5, 1991, the goal of incorporation was finally achieved with 86% of the residents voting in favor of forming the City of Laguna Hills. On December 20, 1991, Laguna Hills officially became a City.

CITY GOVERNMENT
The City of Laguna Hills is a General Law City that operates under the Council/Manager form of government. The voters elect five of their fellow citizens to the City Council for overlapping four‐year terms. The Council, in turn, selects one of its members to serve as Mayor for a one‐year term. The City Council holds regular public meetings on the second and fourth Tuesday of each month.
130

4.6.a
Packet Pg. 212 Attachment: City of Laguna Hills 2023 Final ACFR (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) eidebailly.com
Independent Accountant's Report on
Applying Agreed‐Upon Procedures Related to
the Article XIII‐B Appropriations Limit Calculation
June 30, 2023
City of Laguna Hills, California

4.6.b
Packet Pg. 213 Attachment: City of Laguna Hills 2023 Final GANN Limit AUP Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) What inspires you, inspires us. | eidebailly.com
25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE 1 Independent Accountant’s Report
on the Article XIII‐B Appropriations Limit Calculation
To the Honorable Mayor and Members of the City Council
City of Laguna Hills, California
We have performed the procedures enumerated below, on the Appropriations Limit Calculation of the City of Laguna Hills, California (City) prepared in accordance with Article XIII‐B of the California Constitution for the fiscal year ended June 30, 2023. The City’s management is responsible for the Appropriations Limit Calculation.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating the Appropriations Limit Calculation and we will report on findings based on the procedures performed. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the completed worksheets setting forth the calculations necessary to establish the City's appropriations limit and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were found as a result of this procedure.

2. We added last year’s limit to the annual adjustment amount, and compared the resulting amount to the 2022‐2023 appropriationslimit.

Finding: No exceptions were found as a result of this procedure.

3. We compared the current year information to theworksheets described in Procedure 1 above and to information provided by the California State Department of Finance.

Finding: No exceptions were found as a result of this procedure.

4. We agreed the prior year appropriations limit to the prior year appropriations limit adopted by the City Council.

Finding: No exceptions were found as a result of this procedure.

4.6.b
Packet Pg. 214 Attachment: City of Laguna Hills 2023 Final GANN Limit AUP Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2 We were engaged by the City to perform this agreed‐upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the City’s Appropriations Limit Calculation for the fiscal year ended June 30, 2023. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed‐upon procedures engagement.

This report is intended solely for the information and use of City Council and management of the City and is not intended to be and should not be used by anyone other than those specified parties.

Laguna Hills, California
December 1, 2023

4.6.b
Packet Pg. 215 Attachment: City of Laguna Hills 2023 Final GANN Limit AUP Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) What inspires you, inspires us. | eidebailly.com
25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE 1 December 1, 2023
To the Honorable Mayor and Members of the City Council
City of Laguna Hills
Laguna Hills, California
We have audited the financial statements of City of Laguna Hills, California (City) as of and for the year ended June 30, 2023, and have issued our report thereon dated December 1, 2023. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards and our Compliance Audit under the Uniform Guidance As communicated in our letter dated August 30, 2023, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America and to express an opinion on whether the City complied with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs. Our audit of the financial statements and major program compliance does not relieve you or management of its respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

Our responsibility, as prescribed by professional standards as it relates to the audit of the City’s major federal program compliance, is to express an opinion on the compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. An audit of major program compliance includes consideration of internal control over compliance with the types of compliance requirements referred to above as a basis for designing audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, as a part of our major program compliance audit, we considered internal control over compliance for these purposes and not to provide any assurance on the effectiveness of the the City’s internal control over compliance.

4.6.c
Packet Pg. 216 Attachment: City of Laguna Hills 2023 Final Governance Letter (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2 We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

We have provided our comments regarding internal controls during our audit in our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards dated December 1, 2023.

We have also provided our comments regarding compliance with the types of compliance requirements referred to above and internal controls over compliance during our audit in our Independent Auditor’s Report on Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance dated December 1, 2023.

We also performed agreed upon procedures on the Article XII‐B Appropriation’s Limit Calculation.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence.

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1, the City changed accounting policies related to accounting for right‐to‐use subscription assets to adopt the provisions of GASB Statement No. 96, Subscription‐Based Information Technology Arrangements.

However no restatement or impact noted to the financial statements. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are management’s estimates of the net pension liability, related deferred inflows and outflows of resources, pension expense, and disclosures.

Management’s estimate of the pension information is based on actuarial valuations. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

4.6.c
Packet Pg. 217 Attachment: City of Laguna Hills 2023 Final Governance Letter (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 3 Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:
 The net pension liability and related deferred inflows/outflows of resources and expense in Note 8 are sensitive to the underlying actuarial assumptions used, including, but not limited to, the investment rate of return and discount rate. As disclosed in Note 8, a 1% increase or decrease in the discount rate has a material effect on the City’s net pension liability.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future‐period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit.There were no uncorrected or corrected missstatements identified as a result of our audit procedures.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. We did not identify any circumstances that affect the form and content of the auditor’s report.

Representations Requested from Management
We have requested certain written representations from management which are included in the management representation letter dated December 1, 2023.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

4.6.c
Packet Pg. 218 Attachment: City of Laguna Hills 2023 Final Governance Letter (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 4 Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual reports, does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.

Additionally, in accordance with such standards, we have read the information and considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

Group Audits
The financial statements include the financial activity of the Laguna Hills Public Improvement Corporation (Corporation), a blended component unit. For the purposes of our audit, we do not consider the Corporation to be a significant component of the financial statements. Consistent with the audit of the financial statements as a whole, our audit included obtaining an understanding of the Corporation and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements of Corporation and City as a whole, and completion of further audit procedures.

This report is intended solely for the information and use of the City Council, and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Laguna Hills, California

4.6.c
Packet Pg. 219 Attachment: City of Laguna Hills 2023 Final Governance Letter (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) eidebailly.com
Federal Awards Reports in Accordance
with the Uniform Guidance
June 30, 2023
City of Laguna Hills, California

4.6.d
Packet Pg. 220 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills, California
Table of Contents
June 30, 2023
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards................................................................................................................................1 Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance........................................................................................................................................... 3 Schedule of Expenditures of Federal Awards............................................................................................................ 6 Notes to Schedule of Expenditures of Federal Awards ............................................................................................. 7 Schedule of Findings and Questioned Costs
Section I ‐ Summary of Auditor’s Results............................................................................................................... 8 Section II ‐ Financial Statement Findings............................................................................................................... 9 Section III ‐ Federal Award Findings and Questioned Costs ................................................................................ 10 Summary Schedule of Prior Audit Findings.............................................................................................................. 11

4.6.d
Packet Pg. 221 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) What inspires you, inspires us. | eidebailly.com
25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE 1 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
To the Honorable Mayor and Members of the City Council
City of Laguna Hills, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of City of Laguna Hills, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 1, 2023.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control. Accordingly, we do not express an opinion on the effectiveness of City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.

4.6.d
Packet Pg. 222 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Laguna Hills, California
December 1, 2023

4.6.d
Packet Pg. 223 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) What inspires you, inspires us. | eidebailly.com
25231 Paseo De Alicia, Ste. 100 | Laguna Hills, CA 92653-4615 | T 949.768.0833 | F 949.768.8408 | EOE 3 Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
To the Honorable Mayor and Members of the City Council
City of Laguna Hills, California
Report on Compliance for the Major Federal Program
Opinion on the Major Federal Program
We have audited City of Laguna Hills, California (City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the City’s major federal program for the year ended June 30, 2023. The City’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2023.

Basis for Opinion on the Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City‘s federal programs.

4.6.d
Packet Pg. 224 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 4 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance.

Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

4.6.d
Packet Pg. 225 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 5 Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2023 and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 1, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Laguna Hills, California
December 1, 2023

4.6.d
Packet Pg. 226 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) See Notes to Schedule of Expenditures of Federal Awards 6 City of Laguna Hills, California
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2023
Federal Pass‐through
Financial Entity
Assistance Identifying
Listing Number Expenditures
U.S. Department of the Treasury
COVID‐19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), SLFRF 21.027 3,732,689 $
Total U.S. Department of the Treasury 3,732,689
U.S. Department of Homeland Security
Pass‐through: California Governor's Office of Emergency Services

97.047
Grant # 2020‐0006
Project #PL0114
FIPS #059‐39220   9,849
Total U.S. Department of Homeland Security   9,849
Total Federal Financial Assistance $  3,742,538
Federal Grantor/Pass‐Through
Grantor/Program or Cluster Title
Direct:

Building Resilient Infrastructure and Communities ‐
Pre‐Disaster Mitigation

4.6.d
Packet Pg. 227 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 7 City of Laguna Hills, California
Notes to Schedule of Expenditures of Federal Awards
Year Ended June 30, 2023
Note 1 ‐ Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the City under programs of the federal government for the year ended June 30, 2023. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Because the schedule presents only a selected portion of the operations of the City it is not intended to and does not present the financial position or fund balance, changes in net position, or cash flows of the City.

Note 2 ‐ Summary of Significant Accounting Policies
Expenditures reported in the schedule are reported on the modified‐accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.

Note 3 ‐ Indirect Cost Rate
The City has not elected to use the 10% de minimis cost rate.

4.6.d
Packet Pg. 228 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 8 City of Laguna Hills, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
Section I – Summary of Auditor’s Results

FINANCIAL STATEMENTS
Type of auditor's report issued Unmodified
Internal control over financial reporting
Material weaknesses identified No
Significant deficiencies identified not considered
to be material weaknesses None Reported
Noncompliance material to financial statements noted? No

FEDERAL AWARDS
Internal control over major program
Material weaknesses identified No
Significant deficiencies identified not considered
to be material weaknesses None Reported
Type of auditor's report issued on compliance
for major programs Unmodified
Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance 2 CFR 200.516 No
Identification of major program:

Federal Financial Assistance Listing
COVID‐19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), SLFRF 21.027 Dollar threshold used to distinguish between type A
and type B programs $750,000
Auditee qualified as low‐risk auditee? No
Name of Federal Program

4.6.d
Packet Pg. 229 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 9 City of Laguna Hills, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
Section II
– Financial Statement Findings
None noted.

4.6.d
Packet Pg. 230 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 10 City of Laguna Hills, California
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
Section III – Federal Awards Findings and Questioned Costs None noted.

4.6.d
Packet Pg. 231 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) 11 City of Laguna Hills, California
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2023
Financial Statement Findings
Finding No. Category
2022‐001 Financial Reporting
2022‐002 Budget
Status of Corrective Action
Implemented
Implemented
Federal Award Findings
Finding No. Program CFDA No. Compliance Status of Corrective Action 2022‐003
COVID‐19 Coronavirus State and
Local Fiscal Recovery Funds 21.027 Other Implemented
2022‐004
COVID‐19 Coronavirus State and
Local Fiscal Recovery Funds 21.027 Reporting Implemented

4.6.d
Packet Pg. 232 Attachment: City of Laguna Hills 2023 Final Single Audit Report (3379 : Financial Statements for Fiscal Year Ending June 30, 2023) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: December 12, 2023
TO: Mayor and Council Members
FROM: Jennifer Lee
City Clerk
ISSUE: Affirmation of Appointments List for City Boards, Commissions, and Committees
RECOMMENDATION: That the City Council affirm the Local Appointments List and direct that it be posted on the City's web site, at City Hall and in the Laguna Hills Branch Technology Library in accordance with Government Code Section 54972, the Maddy Act.

SUMMARY:

In accordance with State Law, Government Code Section 54972, the City Council must prepare and post a Local Appointments List prior to December 31, 2023.

BACKGROUND:

The State Legislature found that there was a vast and largely untapped reservoir of talent existing among the citizenry of the State of California and that this resource was not, all too frequently, aware of the many opportunities which exist to participate in and serve on local regulatory and advisory boards, commissions, and committees. In order to provide access to information regarding vacancies which occur on local boards, commissions, and committees, Government Code Section 54972 requires that each legislative body prepare a Local Appointments List on or before December 31st of each year consisting of the following:
• A list of appointive terms, which will expire during the next calendar year, with the name of the incumbent appointee, the date of the appointment, the date the term expires, and the necessary qualifications for the position.

4.7 Packet Pg. 233
Affirmation of Appointments List for City Boards, Commissions, and Committees December 12, 2023

Page 2 ends

Laguna Hills City CouncilDecember 12, 2023

Laguna Hills City Council
December 12, 2023